William Blair Issues Pessimistic Outlook for LII Earnings

Key Points

• William Blair has downgraded its earnings per share forecast for Lennox International for Q3 2025 from $7.50 to $6.70, reflecting a more pessimistic outlook.
• Lennox International reported a quarterly EPS of $7.82 in July, exceeding analyst expectations, but has set FY 2025 guidance between $23.250 and $24.250.
• Analysts have mixed ratings for Lennox International, with five issuing a "buy" rating, five "hold", and three "sell", and an average price target of $611.00.

Lennox International, Inc. (NYSE:LII - Free Report) - Equities researchers at William Blair reduced their Q3 2025 earnings per share estimates for shares of Lennox International in a research note issued on Wednesday, October 15th. William Blair analyst R. Merkel now expects that the construction company will earn $6.70 per share for the quarter, down from their prior forecast of $7.50. 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 Q4 2025 earnings at $5.50 EPS, Q1 2026 earnings at $4.34 EPS, Q2 2026 earnings at $8.46 EPS, Q3 2026 earnings at $7.75 EPS, FY2026 earnings at $26.74 EPS and FY2027 earnings at $29.07 EPS.

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

Other analysts have also issued reports about the company. Weiss Ratings reissued a "buy (b-)" rating on shares of Lennox International in a report on Wednesday, October 8th. The Goldman Sachs Group increased their target price on Lennox International from $619.00 to $691.00 and gave the stock a "buy" rating in a report on Tuesday, July 8th. Oppenheimer reduced their target price on Lennox International from $730.00 to $675.00 and set an "outperform" rating on the stock in a report on Wednesday, September 17th. Wells Fargo & Company raised Lennox International from an "underweight" rating to an "equal weight" rating and reduced their price objective for the company from $675.00 to $575.00 in a research note on Monday, October 6th. Finally, UBS Group reduced their price objective on Lennox International from $676.00 to $610.00 and set a "neutral" rating on the stock in a research note on Tuesday, September 23rd. Five investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and an average price target of $611.00.

Lennox International Stock Performance

LII opened at $523.96 on Friday. The firm has a market cap of $18.40 billion, a P/E ratio of 22.40, a price-to-earnings-growth ratio of 1.89 and a beta of 1.10. Lennox International has a 52-week low of $500.10 and a 52-week high of $689.44. The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.71 and a current ratio of 1.41. The business's fifty day moving average is $555.93 and its 200-day moving average is $568.29.

Lennox International Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 15th. Investors of record on Tuesday, September 30th were paid a $1.30 dividend. The ex-dividend date of this dividend was Tuesday, September 30th. This represents a $5.20 annualized dividend and a yield of 1.0%. Lennox International's dividend payout ratio (DPR) is 22.23%.

Insider Activity

In other Lennox International news, EVP Daniel M. Sessa sold 2,782 shares of the stock in a transaction dated Wednesday, July 23rd. The stock was sold at an average price of $670.04, for a total value of $1,864,051.28. Following the completion of the transaction, the executive vice president directly owned 31,574 shares in the company, valued at approximately $21,155,842.96. This trade represents a 8.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Chris Kosel sold 300 shares of the 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 of the company's stock, valued at $758,764.52. This represents a 18.96% decrease in their ownership of the stock. The disclosure for this sale can be found here. 9.73% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lennox International

Large investors have recently bought and sold shares of the company. GAMMA Investing LLC raised its position in Lennox International by 24.0% in the first quarter. GAMMA Investing LLC now owns 636 shares of the construction company's stock valued at $357,000 after purchasing an additional 123 shares during the last quarter. United Services Automobile Association bought a new position in shares of Lennox International during the first quarter worth about $410,000. AG2R LA Mondiale Gestion D Actifs bought a new position in shares of Lennox International during the first quarter worth about $1,389,000. Strs Ohio bought a new position in shares of Lennox International during the first quarter worth about $1,419,000. Finally, Amundi raised its position in shares of Lennox International by 33.1% during the first quarter. Amundi now owns 189,571 shares of the construction company's stock worth $103,661,000 after acquiring an additional 47,170 shares during the last quarter. 67.07% of the stock is currently owned by institutional investors.

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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