Climate control solutions innovator Lennox International (NYSE: LII) will be announcing earnings results this Wednesday before market hours. Here’s what investors should know.
Lennox beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $1.50 billion, up 3.4% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
Is Lennox a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Lennox’s revenue to be flat year on year at $1.49 billion, slowing from the 9.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $6.84 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lennox has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Lennox’s peers in the building products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Apogee delivered year-on-year revenue growth of 4.6%, beating analysts’ expectations by 2.1%, and AZZ reported revenues up 2%, falling short of estimates by 2.1%. Apogee traded down 4.5% following the results while AZZ was also down 4.9%.
Read our full analysis of Apogee’s results here and AZZ’s results here.
Investors in the building products segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Lennox’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $613 (compared to the current share price of $534.90).
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