Lennox International Posts a Surprise Profit

Seth Jayson, The Motley Fool
Updated

Lennox International (NYS: LII) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Lennox International met expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP loss per share shrank. The non-GAAP profit was a surprise, as analysts had predicted a loss.


Margins expanded across the board.

Revenue details
Lennox International reported revenue of $684.2 million. The five analysts polled by S&P Capital IQ predicted a top line of $685.1 million on the same basis. GAAP reported sales were 0.5% lower than the prior-year quarter's $687.8 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.01. The 10 earnings estimates compiled by S&P Capital IQ predicted -$0.10 per share on the same basis. GAAP EPS were -$0.12 for Q1 compared to -$0.13 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.3%, 30 basis points better than the prior-year quarter. Operating margin was 0.7%, 190 basis points better than the prior-year quarter. Net margin was -0.9%, 10 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $968.0 million. On the bottom line, the average EPS estimate is $0.91.

Next year's average estimate for revenue is $3.40 billion. The average EPS estimate is $2.38.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lennox International is hold, with an average price target of $38.71.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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