William Blair Issues Optimistic Estimate for LII Earnings

Key Points

• William Blair analysts have raised their Q3 2025 earnings estimate for Lennox International (NYSE:LII) to $7.50 per share, reflecting increased optimism about the company's performance.
• Lennox International has recently enacted a share buyback program allowing up to $1.00 billion to be repurchased, indicating management’s belief that the stock is currently undervalued.
• The company also increased its quarterly dividend from $1.15 to $1.30, reflecting a strong financial performance with a dividend yield of 0.8%.

Lennox International, Inc. (NYSE:LII - Free Report) - Stock analysts at William Blair upped their Q3 2025 earnings estimates for shares of Lennox International in a research report issued on Monday, August 18th. William Blair analyst R. Merkel now anticipates that the construction company will earn $7.50 per share for the quarter, up from their previous forecast of $7.46. The consensus estimate for Lennox International's current full-year earnings is $22.94 per share. William Blair also issued estimates for Lennox International's Q2 2026 earnings at $8.63 EPS, Q3 2026 earnings at $8.22 EPS, FY2026 earnings at $27.32 EPS and FY2027 earnings at $29.65 EPS.

LII has been the topic of several other research reports. Royal Bank Of Canada raised their price objective on Lennox International from $580.00 to $582.00 and gave the stock a "sector perform" rating in a research note on Thursday, April 24th. The Goldman Sachs Group raised their price target on Lennox International from $619.00 to $691.00 and gave the company a "buy" rating in a report on Tuesday, July 8th. UBS Group raised their price target on Lennox International from $570.00 to $676.00 and gave the company a "neutral" rating in a report on Monday, July 28th. JPMorgan Chase & Co. boosted their target price on Lennox International from $455.00 to $549.00 and gave the company an "underweight" rating in a research report on Friday, May 16th. Finally, Oppenheimer boosted their target price on Lennox International from $650.00 to $730.00 and gave the company an "outperform" rating in a research report on Thursday, July 24th. Four equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, Lennox International has an average rating of "Hold" and a consensus price target of $635.33.

Lennox International Stock Up 2.1%

NYSE LII opened at $612.3790 on Wednesday. The stock's 50-day moving average price is $594.68 and its 200-day moving average price is $581.30. The company has a quick ratio of 0.71, a current ratio of 1.41 and a debt-to-equity ratio of 0.93. Lennox International has a 52 week low of $500.10 and a 52 week high of $689.44. The company has a market capitalization of $21.51 billion, a P/E ratio of 26.18, a price-to-earnings-growth ratio of 1.93 and a beta of 1.10.

Lennox International (NYSE:LII - Get Free Report) last released its quarterly earnings results on Wednesday, July 23rd. The construction company reported $7.82 EPS for the quarter, beating the consensus estimate of $6.90 by $0.92. Lennox International had a net margin of 15.41% and a return on equity of 99.81%. The firm had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.48 billion. During the same quarter in the prior year, the firm earned $6.83 EPS. The business's revenue for the quarter was up 3.4% compared to the same quarter last year. Lennox International has set its FY 2025 guidance at 23.250-24.250 EPS.

Institutional Investors Weigh In On Lennox International

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Farther Finance Advisors LLC raised its stake in Lennox International by 8.9% in the first quarter. Farther Finance Advisors LLC now owns 576 shares of the construction company's stock valued at $325,000 after buying an additional 47 shares during the last quarter. GAMMA Investing LLC raised its stake in shares of Lennox International by 24.0% in the first quarter. GAMMA Investing LLC now owns 636 shares of the construction company's stock worth $357,000 after purchasing an additional 123 shares during the last quarter. BNP Paribas Financial Markets lifted its holdings in shares of Lennox International by 227.4% during the fourth quarter. BNP Paribas Financial Markets now owns 76,149 shares of the construction company's stock worth $46,398,000 after purchasing an additional 52,888 shares during the period. Achmea Investment Management B.V. lifted its holdings in shares of Lennox International by 22.4% during the first quarter. Achmea Investment Management B.V. now owns 91,338 shares of the construction company's stock worth $51,225,000 after purchasing an additional 16,711 shares during the period. Finally, Sumitomo Mitsui Trust Group Inc. lifted its holdings in shares of Lennox International by 1.9% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 62,815 shares of the construction company's stock worth $35,229,000 after purchasing an additional 1,158 shares during the period. 67.07% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Lennox International

In related news, EVP Daniel M. Sessa sold 2,782 shares of the company's stock in a transaction on Wednesday, July 23rd. The stock was sold at an average price of $670.04, for a total transaction of $1,864,051.28. Following the completion of the sale, the executive vice president directly owned 31,574 shares in the company, valued at $21,155,842.96. This represents a 8.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. 10.40% of the stock is owned by company insiders.

Lennox International announced that its board has approved a share buyback program on Thursday, May 22nd that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the construction company to buy up to 5% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's leadership believes its stock is undervalued.

Lennox International Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 15th. Investors of record on Friday, May 30th were paid a dividend of $1.30 per share. This is an increase from Lennox International's previous quarterly dividend of $1.15. The ex-dividend date was Monday, June 30th. This represents a $5.20 dividend on an annualized basis and a dividend yield of 0.8%. Lennox International's dividend payout ratio (DPR) is currently 22.23%.

About Lennox International

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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