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Lennox Int'l (LII) Tops Q2 EPS by 3c; Narrows FY15 EPS Range

July 20, 2015 8:01 AM

Lennox Int'l (NYSE: LII) reported Q2 EPS of $1.84, $0.03 better than the analyst estimate of $1.81. Revenue for the quarter came in at $993 million versus the consensus estimate of $990.42 million.

Lennox Int'l sees FY2015 EPS of $5.25-$5.50, versus prior guidance of $5.20-$5.60 and the consensus of $5.36.

"Lennox International posted record profits in the second quarter with margin expansion across all three of our businesses," said Chairman and CEO Todd Bluedorn. "Total segment profit margin for the company expanded 120 basis points from the prior-year quarter to a record 13.5%. In our Residential business, we hit record revenue, margin and profit levels. Residential revenue was up 6% at constant currency, and margin expanded 190 basis points to 18.0%. In Commercial, segment profit reached new highs while revenue and margin set second-quarter records. Commercial revenue was up 10% at constant currency, and margin expanded 80 basis points to 17.0%. North America national account business resumed growth as expected, with revenue up high single-digits, and we continued to see success in non-national account business with mid-teens revenue growth. In Refrigeration, revenue was up 4% at constant currency, driven by high single-digit growth in North America. Refrigeration margin ticked up 10 basis points to 7.2%, including headwinds from negative foreign exchange and the mid-2014 repeal of the carbon tax on refrigerant in Australia.

"Looking ahead for the company overall, we now expect revenue growth of 4-7% at constant currency and adjusted EPS from continuing operations of $5.25-$5.50 for the full year. The company remains focused on driving our operational initiatives for higher profitability and is well-positioned to capitalize on end market growth and market share gains. With a strong balance sheet and cash generation, we will continue to invest in the business for future growth as well as return cash to shareholders through dividends and stock repurchases."

For earnings history and earnings-related data on Lennox Int'l (LII) click here.

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