A. O. Smith Increases 2019 Share Repurchase Program by 50 Percent to $300 Million
On June 2, 2019, the Board of Directors of A. O. Smith Corporation (NYSE-AOS) approved adding 3,000,000 shares of common stock to an existing discretionary share repurchase authority. Including the additional shares, the Company has 7,550,753 shares remaining on the board share repurchase authority. The Company increased the amount of its 2019 planned Rule 10b5-1 automatic trading plan and opportunistic share repurchase program from its previously stated $200 million to $300 million, depending on factors such as stock price, working capital requirements and alternative investment opportunities.
“With our cash position, strong balance sheet and confidence in our global business, we are increasing our 2019 share repurchase program by 50 percent to $300 million,” noted Kevin J. Wheeler, president and chief executive officer.
Esta en mi radar y cerquita de minimos de 52 semanas pero el 2,13% de RPD es muy bajo para mi, ahora bien, el 22% de incremento de dividendo que tuvo en Noviembre habria que ver si es sostenible.
A. O. Smith Corporation (AOS) manufactures and markets residential and commercial gas and electric water heaters, boilers, and water treatment products in North America, China, Europe, and India. The company is a dividend champion with a 25 year history of annual dividend increases.
Hace unos días leía el siguiente análisis de la compañía:
"The company has reduced the number of shares outstanding by a little bit over the past decade, taking them from 182 million in 2008 to 172 million in 2018. It would be amazing if A.O. Smith takes advantage of the plunge in the company’s share price, and buys back a decent chunk of stock. This will make our ownership slices of the company higher."
Lo hago a traves del transfer agent de ellos ( https://shareowneronline.equiniti.com). Compre 1 accion con mi broker (TD Ameritrade) y se la envie al transfer agent. AOS tiene un plan que es gratis y puedes invertir desde $25 dolares al mes, es una manera excelente de construir posiciones en compañias solidas a traves del tiempo!
Correcto. Voy construyendo la posicion en el transfer agent y cuando sea lo suficientemente grande, la muevo al broker.
Otra cosa que me obligaria a moverla antes de tiempo es si AOS comienza a cobrar fees por inversion o por reinvertir los divs como han hecho algunas compañias.
Second quarter net earnings of $102.1 million or $0.61 per share on second quarter sales of $765.4 million. Earnings per share declined eight percent compared with second quarter 2018 earnings of $0.66 per share.
Sales in the quarter ended June 30 were eight percent lower compared with sales of $833.3 million during the same period in 2018.
During the first half of 2019, the Company repurchased approximately 2.8 million shares of common stock at a cost of $132.6 million. Approximately 6.3 million shares remained on the Company’s existing repurchase authority at the end of June.
2019 outlook
“We continue to see prolonged headwinds in the appliance market in China. As a result of weakness in consumer demand and recent communications with key customers in China indicating that they will scale back their purchases in the third quarter due to continued elevated channel inventory levels, our outlook for the back half of the year includes a year-over-year decline in China sales,” noted Wheeler. “We project full year China sales to be down between 16 and 17 percent year-over-year in local currency terms and 19 and 20 percent after a three percentage point currency headwind. As a result, we have revised our full year guidance to $2.35 to $2.41 earnings per share.”
Lo han recortado, esto es lo que pronosticaban en la presentación de los resultados del primer trimestre:
" 2019 outlook
We have updated our 2019 earnings per share guidance to a range of $2.69 and $2.75 per share, with no change to the midpoint, which represents a four percent increase compared with our 2018 adjusted earnings per share."
Milwaukee, Wis. — Directors of A. O. Smith Corporation (NYSE:AOS) today approved a 9 percent increase in the company’s quarterly cash dividend to $.24 per share. The dividend increase affects the company’s Common Stock and Class A Common Stock.
The dividend is payable on November 15 to shareholders of record October 31.
“A. O. Smith values its shareholders and works hard to ensure they are rewarded for investing in our company,” said Kevin Wheeler, president and chief executive officer. “We are proud to say the five-year compound annual growth rate of our dividend is more than 24 percent".
