Lennox International Lower By 3% Following Q4 Earnings Miss

Shares of

were trading lower by more than 3 percent on Monday after the company reported its

. Lennox International said that it earned $1.11 per share in the fourth quarter on revenue of $834 million. Wall Street analysts were expecting the company to earn $1.23 per share on revenue of $820.1 million. Diluted earnings per share from continuing operations fell to $0.25 in the fourth quarter from $1.00 a year ago and was impacted by a non-cash impairment charge in the company's Kysor/Warren refrigerated display case business. For the full fiscal year, revenue rose 3 percent to $3.5 billion while adjusted earnings per share from continuing operations rose to $5.14 from $4.11 a year ago. "In the fourth quarter, Residential volume and mix were negatively impacted by record warm weather in the U.S. Residential revenue was up 8% over the prior-year quarter at constant currency," said Chairman and CEO Todd Bluedorn. "Residential profit was flat, and margin was down due to negative Canadian foreign exchange, lower factory absorption than a year ago, and unfavorable mix – driven by a lower mix of furnace products and replacement business, and a higher mix of residential national accounts and new construction. In our Commercial business, we set new fourth-quarter records for revenue and profit. Commercial revenue was up 7% at constant currency, and margin expanded 70 basis points to 15.3%. In Refrigeration, revenue was up 3% at constant currency, and margin expanded 180 basis points to 8.8%." Finally, Lennox International reiterated its fiscal 2016 sales growth outlook of 4 to 8 percent and continues to expect its earnings per share from continuing operations to be $6.10 to $6.60 (versus a consensus estimate of $6.37).