Lennox International Inc.: A Leader in HVACR Solutions Shows Strong Performance
With a market cap of $21.9 billion, Lennox International Inc. (LII) stands out as a prominent player in climate control technology. Headquartered in Richardson, Texas, the company specializes in designing, manufacturing, and marketing an extensive range of heating, ventilation, air conditioning, and refrigeration (HVACR) products for both residential and commercial markets.
Large-Cap Status and Product Range
Being valued at $10 billion or more classifies Lennox International as a “large-cap” stock. Their well-respected brands, including Lennox, Armstrong Air, Heatcraft, and Bohn, reflect a commitment to quality across various efficiency levels and pricing. The company’s global reach includes direct sales, distribution partners, and owned stores, ensuring innovative solutions for customer comfort and refrigeration needs.
Stock Performance and Market Comparison
Currently, shares of Lennox are trading 10% below its 52-week high of $682.50, reached in November. Over the past three months, the stock has increased by 1.6%, outperforming the iShares U.S. Home Construction ETF’s (ITB) decline of 18.7% in the same period. In the longer term, LII stock has shown a notable increase of 14.8% over six months, outstripping ITB’s minimal rise of 2.2%. Over the last 52 weeks, shares of LII have seen a remarkable increase of 37.2%, while the ITB has only grown by 1.6%.
Positive Q3 2024 Financial Results
On October 23, shares of Lennox rose by 2.6% following the announcement of their strong Q3 2024 financial results, which exceeded expectations on Wall Street. The company reported record revenue of $1.5 billion, marking a 15% growth in core revenue, and an adjusted EPS of $6.68, reflecting a 24% year-over-year increase that surpassed analyst predictions. Furthermore, the company raised its full-year guidance, anticipating 10% revenue growth and an EPS forecast between $20.75 and $21. This upward momentum was supported by successful milestones, including the operationalization of a joint venture with Samsung and the timely integration of AES, both of which have positively influenced investor confidence.
Competitive Landscape and Analyst Ratings
While LII exhibits strong performance, its rival, Ingersoll Rand Inc. (IR), has gained only 17% over the past 52 weeks, experiencing a slight dip in the last six months. Despite LII’s relative outperformance, the stock holds a consensus rating of “Hold” from 17 analysts, currently trading just below the mean price target of $620.21.
On the date of publication, Sohini Mondal did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please see the Barchart Disclosure Policy here. More news from Barchart
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