Lennox's Third-Quarter Profit Rises as Residential Sector Thrives

Strength in Lennox's residential sector, as people were stuck at home amid the coronavirus pandemic, compensates for weakness in the business sector.
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Lennox International  (LII) - Get Report shares fell Monday even after the climate control company reported stronger-than-expected earnings for the third quarter.

Strength in the company’s residential sector, as people were stuck at home amid the coronavirus pandemic, compensated for weakness in the business sector, which came as many business facilities were closed by the pandemic.

Lennox traded at $278.94, down 3.22% on Monday. The stock has climbed 18% year to date.

Revenue was $1.06 billion in the third quarter, up 3% from $1.03 billion in the year-earlier quarter. The FactSet analyst consensus had the latest figure at $995 million.

Meanwhile, net income totaled $131.7 million, or $3.42 a share, in the latest quarter, up from $114.7 million, or $2.94 a share, last year.

Adjusted earnings per share came in at $3.53 for the latest quarter, topping analysts’ forecast of $3.15.

Lennox predicts full-year adjusted earnings from continuing operations of $9.05 to $9.65 a share, up from its previous estimate of $7.90 to $8.70, and above Bloomberg’s analyst consensus of $8.85.

The company anticipates full-year adjusted revenue of negative 5% to negative 9%, compared to the prior estimate of negative 10% to negative 15%.