- Lennox International Inc (NYSE:LII) reported first-quarter FY22 revenue growth of 9% year-on-year to $1.01 billion, beating the consensus of $961.61 million.
- Revenue in the Residential Heating & Cooling business segment increased 13% Y/Y to $682 million, Commercial Heating & Cooling business declined 6% to $188 million, and the Refrigeration business jumped 15% to $144 million.
- Adjusted EPS of $2.36 beat the analyst consensus of $2.04.
- Gross profit rose 5% Y/Y to $268 million, and the margin contracted 110 basis points Y/Y to 26.5%.
- Selling, general and administrative expenses rose 6.8% Y/Y to $155.3 million.
- The operating margin for the quarter contracted 122 basis points to 11%.
- Total segment profit fell 1% to $115 million, and the segment margin declined 110 basis points to 11.3%.
- The company held $40 million in cash and equivalents as of March 31, 2022.
- "In Commercial, demand remained strong, but the business continued to be hit the hardest on the production front with labor constraints and global supply chain disruptions," said interim CEO Todd Teske.
- Outlook: Lennox raised FY22 sales growth guidance to 7% – 11% from 5% - 10%.
- It reiterated the FY22 EPS outlook of $13.50 - $14.50 against the consensus of $14.09.
- The company also reiterated stock repurchase guidance of $400 million for the full year.
- Price Action: LII shares closed lower by 2.06% at $247.09 on Friday.
