Lennox International Earnings: Everything You Must Know Now

Lennox International, Inc. (NYSE:LII) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Lennox International, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 33.67% to $1.31 in the quarter versus EPS of $0.98 in the year-earlier quarter.

Revenue: Decreased 2.22% to $913.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lennox International, Inc. reported adjusted EPS income of $1.31 per share. By that measure, the company beat the mean analyst estimate of $1.19. It beat the average revenue estimate of $886.03 million.

Quoting Management: “The company’s strong business momentum continued in the second quarter, with revenue up 9% and total segment profit margin up 200 basis points to a record level of 11.6%,” said Todd Bluedorn, Chairman and CEO of Lennox International. “In our Residential business, revenue was up 16% on strong double-digit growth in both new construction and replacement business, and margin expanded 370 basis points to 13.9%. Residential profit was up 58%. In our Commercial business, revenue and profit were up 4%, led by growth in the emergency replacement market and commercial services. Commercial margin increased 10 basis points to 15.1%. In Refrigeration, revenue was flat on the timing of national account business and soft economic conditions in Europe, but growth was strong in South America and Asia Pacific. Refrigeration profit was up 22% as margin expanded 220 basis points to 12.4%. Looking at 2013 for the company overall, we are raising our revenue and earnings guidance for the year. As markets continue to recover, the company is strategically well-positioned to drive our financial performance to new levels as we continue to execute on achieving our longer-term financial targets.”

Key Stats (on next page)…

Revenue increased 36.61% from $668.4 million in the previous quarter. EPS increased 296.97% from $0.33 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.22 and has not changed. For the current year, the average estimate has moved up from a profit of $3.39 to a profit of $3.44 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)