Lennox (LII) Beats on Q2 Earnings, Lags on Revenues

Lennox International, Inc. (LII) 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.

However, certain industry-specific issues such as appreciating U.S. dollar and extensive business rivalry might partially offset the aforesaid positives and thus dampen Lennox International's earnings.

In the last four trailing quarters, Lennox International reported better-than-expected results in three out of four trailing quarters, while lagged behind in one. Average earnings surprise is a positive 0.89%.

Currently, LII has a Zacks Rank #3 (Hold), but that could definitely change after the release of its upcoming earnings report. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Lennox International’s adjusted earnings came in at $2.53 per share in second-quarter of 2016, above the Zacks Consensus Estimate of $2.35 per share.

Revenue: The company posted net sales of $1.02 billion, below the Zacks Consensus Estimate of $1.05 billion.

Key Stats to Note: On the back of strong performance and end-market demand, the company has raised its full year 2016 adjusted earnings guidance to the range of $6.50−$6.90 from the earlier prediction of $6.30-$6.80 per share. At a constant currency, revenue growth is expected to be 3−7% versus 4−8% expected earlier. In addition, the company announced $100 million share buyback program.

Stock Price: Lennox International’s shares were up 0.78% ahead of the report while showed 1.35% gain in the pre-market trading session.

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