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Lennox (LII) to Report Q1 Earnings: What's in the Cards?
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Lennox International Inc. (LII - Free Report) is slated to report first-quarter 2018 results on Apr 23, before the market opens.
The company pulled off an average positive earnings surprise of 6.23% over the preceding four quarters. Notably, Lennox International’s adjusted earnings per share in fourth-quarter 2017 came in at $1.68 per share, beating the Zacks Consensus Estimate of $1.65.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Lennox International believes its research and development projects, as well as new marketing programs will bolster its segmental revenues. Moreover, the company noted that new investments made to expand its distribution footprint will help drive aggregate top-line results in the first quarter.
We believe improving replacement, new constructions and equipment sales will continue to drive Lennox International’s revenues. Notably, we notice that the Zacks Consensus Estimates for first-quarter 2018 revenues of the company’s Commercial Heating & Cooling and Residential Heating & Cooling segments are currently pegged at $200 million and $442 million, respectively, higher than the corresponding tallies of $196 million and $420 million recorded in the prior-year quarter.
However, the Zacks Consensus Estimate for first-quarter 2018 revenues of the company’s Refrigeration segment is $178 million, in line with the year-ago tally. Weak refrigeration sales in Asia-Pacific, Europe and South American end-markets might continue to dent the segment’s performance in the to-be-reported quarter.
Lennox International also anticipates that reduced corporate taxes, lower sourcing and engineering-led costs, higher volume, and favorable pricing impact will aid in boosting its profitability in the quarters ahead. However, elevated commodity costs, unfavorable mix, warranty expenses and ongoing growth-based investments might impede bottom-line growth in the near term.
Earnings Whispers
Our proven model provides some idea on the stocks that are about to release their earnings results. Per the model, a stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or 2 (Buy) or at least 3 (Hold) for a likely earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
That is not the case here as we will see below.
Zacks ESP: Lennox International has an Earnings ESP of -5.04%. This is because the Zacks Consensus Estimate of $1.08 is higher than the Most Accurate estimate of $1.03 per share.
Zacks Rank: Lennox International’s favorable Zacks Rank of 3, when combined with a negative Earnings ESP, makes surprise predictions difficult.
It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some stocks that you may want to consider from the Zacks Construction sector, as our model shows that these have the right combination of elements to post an earnings beat:
Louisiana-Pacific Corporation (LPX - Free Report) , with an Earnings ESP of +15.79% and a Zacks Rank #1.
Patrick Industries, Inc. (PATK - Free Report) , with an Earnings ESP of +1.86% and a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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Lennox (LII) to Report Q1 Earnings: What's in the Cards?
Lennox International Inc. (LII - Free Report) is slated to report first-quarter 2018 results on Apr 23, before the market opens.
The company pulled off an average positive earnings surprise of 6.23% over the preceding four quarters. Notably, Lennox International’s adjusted earnings per share in fourth-quarter 2017 came in at $1.68 per share, beating the Zacks Consensus Estimate of $1.65.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Lennox International believes its research and development projects, as well as new marketing programs will bolster its segmental revenues. Moreover, the company noted that new investments made to expand its distribution footprint will help drive aggregate top-line results in the first quarter.
We believe improving replacement, new constructions and equipment sales will continue to drive Lennox International’s revenues. Notably, we notice that the Zacks Consensus Estimates for first-quarter 2018 revenues of the company’s Commercial Heating & Cooling and Residential Heating & Cooling segments are currently pegged at $200 million and $442 million, respectively, higher than the corresponding tallies of $196 million and $420 million recorded in the prior-year quarter.
However, the Zacks Consensus Estimate for first-quarter 2018 revenues of the company’s Refrigeration segment is $178 million, in line with the year-ago tally. Weak refrigeration sales in Asia-Pacific, Europe and South American end-markets might continue to dent the segment’s performance in the to-be-reported quarter.
Lennox International also anticipates that reduced corporate taxes, lower sourcing and engineering-led costs, higher volume, and favorable pricing impact will aid in boosting its profitability in the quarters ahead. However, elevated commodity costs, unfavorable mix, warranty expenses and ongoing growth-based investments might impede bottom-line growth in the near term.
Earnings Whispers
Our proven model provides some idea on the stocks that are about to release their earnings results. Per the model, a stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or 2 (Buy) or at least 3 (Hold) for a likely earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
That is not the case here as we will see below.
Zacks ESP: Lennox International has an Earnings ESP of -5.04%. This is because the Zacks Consensus Estimate of $1.08 is higher than the Most Accurate estimate of $1.03 per share.
Lennox International, Inc. Price and EPS Surprise
Lennox International, Inc. Price and EPS Surprise | Lennox International, Inc. Quote
Zacks Rank: Lennox International’s favorable Zacks Rank of 3, when combined with a negative Earnings ESP, makes surprise predictions difficult.
It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some stocks that you may want to consider from the Zacks Construction sector, as our model shows that these have the right combination of elements to post an earnings beat:
Boise Cascade, L.L.C. (BCC - Free Report) , with an Earnings ESP of +27.61% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Louisiana-Pacific Corporation (LPX - Free Report) , with an Earnings ESP of +15.79% and a Zacks Rank #1.
Patrick Industries, Inc. (PATK - Free Report) , with an Earnings ESP of +1.86% and a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>