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 $18.2 billion by market cap, Lennox employs over 14,000 people globally and operates in the U.S., Canada, India, and Europe. The company is gearing up to release its first-quarter results before the market opens on Wednesday, Apr. 23.
Ahead of the event, analysts expect Lennox to report a non-GAAP profit of $3.18 per share, down 8.4% from $3.47 per share reported in the year-ago quarter. On a positive note, Lennox has a robust earnings surprise history and surpassed the Street’s earnings estimates in each of the past four quarters.
For the full fiscal 2025, Lennox is expected to deliver a non-GAAP EPS of $22.95, up a modest 1.6% from $22.58 in fiscal 2024. However, in fiscal 2026, its earnings are expected to surge 12.1% year-over-year to $25.72 per share.
LII stock has soared nearly 16.5% over the past 52-week period, outperforming the Industrial Select Sector SPDR Fund’s (XLI) 1.3% uptick and the S&P 500 Index’s ($SPX) 4.7% gains during the same time frame.
LII stock plummeted 8.8% after the release of its Q1 results on Jan. 29. The company’s core revenues increased 22% compared to the year-ago quarter, leading to its overall topline surging 16.5% year-over-year to $1.35 billion, exceeding the Street expectations by 8.7%. Furthermore, the company’s adjusted EPS soared 54.3% year-over-year to $5.60, surpassing analysts’ projections by 32.4%. However, in fiscal 2025, Lennox expects its core revenues to increase by a modest 2% and its adjusted EPS guidance range of $22.00 to $23.50 fell short of projections. Meanwhile, as per its guidance’s midpoint, the company expects its free cash flow to drop 7.6% year-over-year to $725 million, which shattered investor confidence.
Analysts remain cautious about the stock’s prospects, it has a consensus “Hold” rating overall. Out of the 17 analysts covering the LII stock, five recommend “Strong Buy,” seven suggest “Hold,” one advocate “Moderate Sell,” and four advise a “Strong Sell” rating. Its mean price target of $626.07 represents an 11.6% 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.
