Lennox International (NYSE:LII) Stock Crosses Below 50-Day Moving Average on Disappointing Earnings

Key Points

• Lennox International’s shares fell below their 50-day moving average after adjusted EPS came in at $6.84, missing the $7.36 consensus estimate and declining from $6.98 a year earlier.
• Although quarterly revenue rose 10.2% year over year to $1.57 billion, profitability weakened as competitive pressure, inflation, tariffs and pricing actions reduced segment profit.
• Management cut its 2026 adjusted EPS outlook to $21.00–$21.50 from $23.00–$24.00, while analysts lowered price targets; the stock carries a consensus “Hold” rating.

Lennox International, Inc. (NYSE:LII - Get Free Report)'s stock price crossed below its 50-day moving average during trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock has a 50-day moving average of $371.01 and traded as low as $325.70. Lennox International shares last traded at $332.5810, with a volume of 2,379,087 shares.

The construction company reported $6.84 EPS for the quarter, missing the consensus estimate of $7.36 by ($0.52). Lennox International had a net margin of 14.61% and a return on equity of 66.42%. The business had revenue of $1.57 billion for the quarter, compared to analysts' expectations of $1.58 billion. During the same quarter in the prior year, the company posted $6.98 EPS. The business's revenue for the quarter was up 10.2% on a year-over-year basis.

Lennox International Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were given a dividend of $1.36 per share. This represents a $5.44 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend was Wednesday, September 30th. Lennox International's dividend payout ratio is currently 24.59%.

Trending Headlines about Lennox International

Here are the key news stories impacting Lennox International this week:

• Positive Sentiment: Third-quarter revenue increased 10% year over year to approximately $1.6 billion, indicating continued demand for Lennox’s building and home-comfort products. Lennox Reports 2026 Third Quarter Earnings Results
• Positive Sentiment: Management continues to position the company around energy-efficient solutions, while revenue growth suggests that demand has remained relatively resilient despite a challenging cost environment.
• Neutral Sentiment: Lennox’s earnings call focused on competitive conditions, pricing actions and cost management, with investors likely looking for evidence that margins can recover in coming quarters. Lennox International Q3 2026 Earnings Call Transcript
• Negative Sentiment: Adjusted diluted EPS was $6.84, down 7% from $6.98 a year earlier and below analysts’ expectations. GAAP diluted EPS was $6.41. Lennox Q3 Earnings Lag Estimates
• Negative Sentiment: The company cut its 2026 adjusted EPS outlook to $21.00–$21.50 from $23.00–$24.00, forcing investors to reset earnings expectations. Lennox Slashes FY26 Outlook
• Negative Sentiment: Management cited competitive pressure, inflation, tariff-related costs and lower factory absorption as factors weighing on profitability. In Home Comfort Solutions, pricing intended to defend or regain market share pressured segment margins.
• Negative Sentiment: Total segment profit declined 2% despite the revenue increase, reinforcing concerns that cost inflation and pricing pressure are limiting operating leverage.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. Morgan Stanley lowered their price target on Lennox International from $375.00 to $350.00 and set an "underweight" rating for the company in a report on Thursday, October 15th. Oppenheimer cut their price objective on shares of Lennox International from $575.00 to $548.00 and set an "outperform" rating on the stock in a report on Wednesday, October 14th. The Goldman Sachs Group lowered shares of Lennox International from a "buy" rating to a "neutral" rating and decreased their price objective for the company from $547.00 to $390.00 in a research report on Wednesday, October 14th. William Blair reiterated an "outperform" rating on shares of Lennox International in a research note on Wednesday, July 29th. Finally, Mizuho dropped their target price on shares of Lennox International from $450.00 to $395.00 and set a "neutral" rating on the stock in a research report on Thursday, October 15th. Four investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $480.00.

Institutional Trading of Lennox International

Large investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in shares of Lennox International in the second quarter worth about $1,704,846,000. Beacon Pointe Advisors LLC acquired a new stake in shares of Lennox International during the second quarter worth about $239,217,000. Bank of America Corp DE purchased a new stake in Lennox International in the second quarter valued at approximately $196,075,000. Deutsche Bank AG purchased a new stake in Lennox International in the second quarter valued at approximately $159,181,000. Finally, Bank of New York Mellon Corp purchased a new stake in Lennox International in the second quarter valued at approximately $109,955,000. Hedge funds and other institutional investors own 67.07% of the company's stock.

Lennox International Trading Down 10.6%

The company's fifty day moving average is $371.01 and its two-hundred day moving average is $473.93. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.77 and a current ratio of 1.57. The company has a market cap of $11.49 billion, a price-to-earnings ratio of 15.04, a P/E/G ratio of 1.57 and a beta of 1.16.

Lennox International Company Profile

Lennox International Inc is a heating, ventilation, air conditioning and refrigeration company headquartered in Richardson, Texas. Founded in 1895 by Dave Lennox, the company develops and markets products designed to provide climate control and improve indoor air quality in residential and commercial buildings.

Its product portfolio includes air conditioners, heat pumps, furnaces, air handlers, thermostats, indoor air-quality equipment and related controls. Lennox also provides commercial heating and cooling systems, replacement components, installation support and other services through distributors, dealers and contractors.

Lennox primarily serves customers in the United States and Canada, with products and services also marketed in selected international markets.

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