Lennox Q3 Earnings Miss Estimates, Tightens FY21 Outlook

  • Lennox International Inc LII reported third-quarter FY21 sales growth of 0.5% year-on-year, to $1.059 billion, missing the analyst consensus of $1.13 billion.
  • Revenue in the Residential Heating & Cooling business segment declined 2% Y/Y, Commercial Heating & Cooling increased 2%, and Refrigeration rose 10%.
  • Gross profit declined 9% Y/Y to $295 million, and the margin contracted 270 basis points Y/Y to 27.9%.
  • The operating margin was 15.4%, and operating income for the quarter declined 2.6% to $162.7 million.
  • Adjusted EPS of $3.40 missed the analyst consensus of $3.64.
  • Lennox held $44 million in cash and equivalents as of September 30, 2021. Net cash provided by operating activities totaled $222 million with a free cash flow of $199 million.
  • "Demand remained strong across all our end markets in the third quarter, but global supply chain and Covid-19 disruptions to production and our labor force materially impacted financial performance," said Chairman and CEO Todd Bluedorn.
  • Outlook: Lennox narrowed the FY21 adjusted EPS outlook to $12.10 - $12.30 (prior view $12.10-$12.70) versus the consensus of $12.87.
  • It expects revenue growth of 13%-15% (prior view 12%-16%).
  • "Looking ahead for the company overall, demand remains strong. But global supply chain bottlenecks and shortages are not expected to be resolved soon, and Covid-19 adds more complexity to labor and production disruptions," Bluedorn added.
  • Price Action: LII shares traded lower by 2.94% at $303.06 on the last check Monday.
Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceMoversTrading IdeasBriefsBuilding ProductsIndustrials
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!