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Lennox (LII) Beats on Q4 Earnings, Misses Revenue Estimate

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Lennox International, Inc. (LII - Free Report) offers premium and innovative climate control products in the global ventilation, heating, refrigeration and air conditioning markets. Residential Heating & Cooking, Commercial Heating & Cooking and Refrigeration are the three major business segments of the company.

The company’s innovation-based business growth strategy helps it strengthen its product portfolio and makes its operations more cost effective.

LII has a positive average earnings surprise of 7.56% over the last four trailing quarters, beating estimates in all the four sessions.

Currently, LII has a Zacks Rank #3 (Hold), but that could definitely change after the release of its upcoming earnings report. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: LII’s adjusted earnings came in at $1.68 per share in fourth-quarter of 2017, above the Zacks Consensus Estimate of $1.66 per share.
Revenue: The company posted net sales of $891.8 million below the Zacks Consensus Estimate of $909 million.

Key Stats to Note: Including the benefits of the new U.S. tax legislation, LII anticipates to report earnings within the range of $9.75-$10.35 per share range in 2018. Top line growth for 2018 is predicted to lie within 3-7%. The company is poised to grow on the back of sturdier segmental performance, new growth investments and greater operational efficacy.

Stock Price: At the time of writing, the stock price of LII was down nearly 0.5% ($1.06) in the pre-market trade on Nasdaq. Clearly the initial reaction to the release is negative. We view the company’s weaker-than-expected top line performance during the reported quarter as the primary reason behind the sentiment.

As of Feb 5, 2018, LII’s closed the trading session at $196 per share.  

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