Richardson, Texas-based Lennox International Inc. (LII) designs and manufactures a range of products for the heating, ventilation, air conditioning, and refrigeration markets. Valued at $22.3 billion by market cap, Lennox employs over 12,000 people globally and operates in the U.S., Canada, India, and Europe. The company is gearing up to release its fourth-quarter results before the market opens on Wednesday, Jan. 29.
Ahead of the event, analysts expect Lennox to report a non-GAAP profit of $4.12 per share, up 13.5% from $3.63 per share reported in the year-ago quarter. Moreover, the company has a robust earnings surprise history. It has surpassed Wall Street’s bottom-line estimates in each of the past four quarters. Its adjusted EPS for the last reported quarter surged 24.4% year-over-year to $6.68, exceeding analysts’ estimates by 12.3%.
For the full fiscal 2024, Lennox is expected to report an adjusted EPS of $21.10, up a staggering 17.5% from $17.96 in fiscal 2023. While in fiscal 2025, its earnings are expected to grow 10.7% year-over-year to $23.35 per share.
LII stock prices soared 43.7% over the past 52 weeks, significantly outperforming the Industrial Select Sector SPDR Fund’s (XLI) 18.4% gains and the S&P 500 Index’s ($SPX) 24.4% surge during the same time frame.
Lennox International’s stock prices rose 2.6% after the release of its impressive Q3 results on Oct. 23. The company observed significant organic growth and coupled with acquisitions its total net sales surged 9.6% year-over-year to $1.5 billion, which surpassed Street’s expectations by a notable 6.2%. Furthermore, Lennox demonstrated exceptional expense discipline which led to a massive 62.4% growth in operating income to a record $303.3 million.
Meanwhile, the company also observed significant growth in cash flow generation, its aggregate operating cash flows for the past three quarters surged 42.7% year-over-year to $613.3 million. Observing the solid momentum, Lennox raised its full-year revenues, earnings, and cash flow guidance which boosted investor confidence.
However, analysts remain cautious about the stock’s prospects, it has a consensus “Hold” rating overall. Out of the 17 analysts covering the stock, six recommend “Strong Buy,” eight suggest “Hold,” and three advise “Strong Sell” rating. Its mean price target of $632.93 represents a modest 1.2% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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