Lennox International | $LII Stock | Shares Slip Despite Q2 Profit Jump & Guidance Lift


Lennox International, Inc. (NYSE: LII)


Shares of Lennox International, Inc. are down $6.11, or 2.83% to $210.02 in the early hours of regular trading on Monday.

Before the opening bell, the Texas-based company announced better-than-expected second-quarter financial results, and raised the lower end of its full-year earnings guidance.

LII Earnings & Outlook

Lennox Stock Chart

The company reported net income of $139.2 million, or $3.39 a share, versus $116.4, or $2.71 a share, in the same period last year.

Excluding one-time items, earnings were $3.67 a share during the quarter, surpassing Wall Street expectations of $3.56 a share.

Total revenue for the quarter came in at $1.18 billion, up 7% from $1.1 billion in the earlier-year quarter.

Analysts expected adjusted earnings per share of $3.56 a share on $1.13 billion revenue for the second quarter, according to figures compiled by Thompson Reuters.

Lennox sees its yearly diluted earnings in the range of $9.95 to $10.35 per share, from the previous forecast of $9.75 to $10.35 per diluted share.

Lennox International CEO Comments

“Lennox International posted record revenue, profit and margin in the second quarter led by broad strength in our Residential and Commercial businesses. In Residential, revenue and profit hit new highs on strength in both replacement and new construction business. Residential revenue was up 9% at constant currency, and profit rose 9% as segment margin remained at the record 21.5% level. In Commercial, revenue and profit also set new highs. Commercial revenue was up 12% at constant currency on strength in North America equipment and services. Commercial profit rose 18% as segment margin expanded 70 basis points to 18.0%. In Refrigeration, revenue was up 1% at constant currency, and profit rose 5% as segment margin expanded 40 basis points to 14.9%,” said Chairman and CEO Todd Bluedorn.

“With the record first half for the company and strong start in the third quarter, we are raising our outlook for 2018 as we continue to expect another record year for Lennox International. We now expect adjusted revenue growth of 6-8% in 2018 and adjusted EPS from continuing operations of $9.95-$10.35. In addition, we are raising our stock repurchase guidance to a total of $450 million for the full year,” Bluedorn concluded.

Lennox International, Inc. Company Profile

Lennox International, Inc. is engaged in the provision of climate control solutions in the US, Canada, and worldwide. The company designs, makes, and sells various products for the refrigeration, heating, air conditioning, and ventilation markets.

It operates through three segments: Refrigeration, Commercial Heating & Cooling, and Residential Heating & Cooling.

The Refrigeration segment provides unit coolers, air handlers, condensing units, fluid coolers, display cases, refrigeration rack systems, and air cooled condensers that help in preserving items in warehouses, convenience stores, distribution centers, restaurants, and supermarkets, as well as for machine tooling, data centers, industrial process chillers, compressor racks, and other cooling applications.

The Commercial Heating & Cooling division provides small package units, rooftop units, air handler combinations/split system, fan coils, and chillers for shopping malls, commercial buildings, and entertainment buildings.

It also offers variable refrigerant flow commercial products, and engages in the installation and servicing of commercial cooling and heating equipment.

The Residential Heating & Cooling segment offers heat pumps, furnaces, packaged cooling and heating air conditioners, comfort control products, indoor air quality equipment, and replacement supplies and parts for new construction and residential replacement markets.

Lennox International, Inc. sells its services and products via distributors, direct sales, and company-owned supplies stores. The company was founded in 1895 by Dave Lennox. Its headquarters are based in Richardson, Texas. –Reuters