Lennox International (NYSE:LII) Releases Earnings Results, Beats Expectations By $0.29 EPS

Key Points

• Lennox International reported earnings of $6.98 per share, exceeding expectations by $0.29, although revenue of $1.43 billion fell short of forecasts.
• The company's net margin stands at 15.41% with a return on equity of 99.81%, but its quarterly revenue is down 4.8% year-over-year.
• Lennox International declared a quarterly dividend of $1.30 per share, which represents an annualized dividend of $5.20, yielding 0.9%.

Lennox International (NYSE:LII - Get Free Report) issued its quarterly earnings results on Wednesday. The construction company reported $6.98 EPS for the quarter, topping the consensus estimate of $6.69 by $0.29, Zacks reports. The business had revenue of $1.43 billion for the quarter, compared to analysts' expectations of $1.54 billion. Lennox International had a net margin of 15.41% and a return on equity of 99.81%. The company's quarterly revenue was down 4.8% compared to the same quarter last year. During the same quarter last year, the company posted $6.68 earnings per share. Lennox International updated its FY 2025 guidance to 22.750-23.250 EPS.

Lennox International Stock Up 2.8%

Lennox International stock opened at $549.55 on Wednesday. The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.71 and a current ratio of 1.41. Lennox International has a one year low of $500.10 and a one year high of $689.44. The company has a 50-day simple moving average of $553.03 and a 200-day simple moving average of $568.02. The firm has a market capitalization of $19.30 billion, a P/E ratio of 23.50, a P/E/G ratio of 1.96 and a beta of 1.10.

Lennox International Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, October 15th. Stockholders of record on Tuesday, September 30th were issued a dividend of $1.30 per share. The ex-dividend date of this dividend was Tuesday, September 30th. This represents a $5.20 annualized dividend and a dividend yield of 0.9%. Lennox International's payout ratio is 22.23%.

Insiders Place Their Bets

In other Lennox International news, CAO Chris Kosel sold 300 shares of the company's stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $591.86, for a total value of $177,558.00. Following the completion of the transaction, the chief accounting officer owned 1,282 shares in the company, valued at approximately $758,764.52. This represents a 18.96% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 10.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lennox International

Hedge funds and other institutional investors have recently made changes to their positions in the business. Ameriprise Financial Inc. grew its holdings in Lennox International by 296.0% in the 2nd quarter. Ameriprise Financial Inc. now owns 71,815 shares of the construction company's stock worth $41,168,000 after buying an additional 53,679 shares in the last quarter. California State Teachers Retirement System raised its stake in Lennox International by 6.1% during the 2nd quarter. California State Teachers Retirement System now owns 48,533 shares of the construction company's stock valued at $27,821,000 after acquiring an additional 2,785 shares in the last quarter. Lazard Asset Management LLC boosted its position in Lennox International by 111.1% during the 2nd quarter. Lazard Asset Management LLC now owns 18,659 shares of the construction company's stock worth $10,696,000 after acquiring an additional 9,818 shares during the period. State of Tennessee Department of Treasury grew its stake in shares of Lennox International by 75.2% in the second quarter. State of Tennessee Department of Treasury now owns 7,082 shares of the construction company's stock worth $4,060,000 after purchasing an additional 3,039 shares in the last quarter. Finally, MUFG Securities EMEA plc bought a new position in shares of Lennox International in the second quarter worth $54,000. 67.07% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

LII has been the topic of several research reports. Wells Fargo & Company upgraded Lennox International from an "underweight" rating to an "equal weight" rating and cut their price objective for the company from $675.00 to $575.00 in a research note on Monday, October 6th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Lennox International in a report on Wednesday, October 8th. Barclays dropped their price target on Lennox International from $753.00 to $730.00 and set an "overweight" rating on the stock in a research report on Tuesday, September 16th. UBS Group decreased their price objective on shares of Lennox International from $676.00 to $610.00 and set a "neutral" rating for the company in a report on Tuesday, September 23rd. Finally, The Goldman Sachs Group boosted their target price on shares of Lennox International from $619.00 to $691.00 and gave the company a "buy" rating in a research note on Tuesday, July 8th. Five analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $606.00.

Lennox International Company Profile

Lennox International Inc, together with its subsidiaries, designs, manufactures, and markets a range of products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, Canada, and internationally. The Home Comfort Solutions segment provides furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, and replacement parts and supplies; residential heating, ventilation, cooling equipment, and air conditioning; and evaporator coils and unit heaters under Lennox, Dave Lennox Signature Collection, Armstrong Air, Ducane, AirEase, Concord, MagicPak, Advanced Distributor Products, Allied, Elite Series, Merit Series, Comfort Sync, Healthy Climate, iComfort, ComfortSense, and Lennox Stores name.

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