Lennox International Prepares for Q1 Earnings Report Amid Market Expectations
Richardson, Texas-based Lennox International Inc. (LII) designs and manufactures a range of products for the heating, ventilation, air conditioning, and refrigeration markets. With a market capital of $18.2 billion, Lennox employs over 14,000 people globally and has operations in the U.S., Canada, India, and Europe. The company is set to release its first-quarter results before the market opens on Wednesday, April 23.
Analysts’ Expectations for Q1 Results
Leading up to the earnings report, analysts forecast that Lennox will report a non-GAAP profit of $3.18 per share. This figure reflects an 8.4% decline from last year’s $3.47 per share. However, it’s notable that Lennox has a strong history of earnings surprises, having beaten the Street’s earnings estimates in each of the last four quarters.
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Fiscal Forecasts: 2025 and Beyond
For the full fiscal year 2025, Lennox is anticipated to report a non-GAAP EPS of $22.95, signifying a modest increase of 1.6% from $22.58 in fiscal 2024. The company’s earnings are expected to rise significantly by 12.1% in fiscal 2026, reaching $25.72 per share.
Lennox Stock Performance and Investor Sentiment
LII Stock has gained nearly 16.5% over the past 52 weeks, outperforming the Industrial Select Sector SPDR Fund’s (XLI) 1.3% increase and the S&P 500 Index’s ($SPX) 4.7% rise during the same period.
However, LII Stock saw an 8.8% decline following the release of its Q1 results on January 29. The company reported a 22% increase in core revenues compared to the previous year, resulting in an overall topline surge of 16.5% year-over-year to $1.35 billion, which exceeded Street expectations by 8.7%. Adjusted EPS grew 54.3% year-over-year to $5.60, surpassing analyst projections by 32.4%.
Looking ahead, Lennox anticipates core revenues will rise by a modest 2% in fiscal 2025. The company’s adjusted EPS guidance range of $22.00 to $23.50 fell short of projections. Additionally, it expects free cash flow to decrease by 7.6% year-over-year to $725 million, potentially impacting investor confidence.
Analysts’ Consensus and Stock Rating
Despite past successes, analysts are taking a cautious stance on the Stock. Currently, the consensus rating is “Hold.” Among the 17 analysts covering LII Stock, five recommend “Strong Buy,” seven suggest “Hold,” one advocates “Moderate Sell,” and four advise a “Strong Sell” rating. The mean price target is $626.07, indicating an 11.6% upside potential from the current levels.
On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
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