Research Analysts Set Expectations for LII Q3 Earnings

Key Points

• William Blair has revised their Q3 2025 earnings per share estimate for Lennox International from $7.19 to $7.46, reflecting positive growth expectations.
• Lennox International recently reported a quarterly earnings of $7.82 per share, exceeding analysts' estimates by $0.92 and resulting in a revenue of $1.50 billion for the quarter.
• The company announced a quarterly dividend increase from $1.15 to $1.30 per share, with an annualized yield of 0.79%, and has authorized a $1 billion share repurchase program.

Lennox International, Inc. (NYSE:LII - Free Report) - Stock analysts at William Blair upped their Q3 2025 earnings per share (EPS) estimates for Lennox International in a report issued on Wednesday, July 23rd. William Blair analyst R. Merkel now expects that the construction company will earn $7.46 per share for the quarter, up from their previous forecast of $7.19. 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 FY2025 earnings at $24.21 EPS, Q2 2026 earnings at $8.47 EPS, Q4 2026 earnings at $6.01 EPS and FY2027 earnings at $28.80 EPS.

Other analysts have also recently issued reports about the company. The Goldman Sachs Group increased their price target on Lennox International from $619.00 to $691.00 and gave the stock a "buy" rating in a research report on Tuesday, July 8th. Oppenheimer raised their price objective on Lennox International from $650.00 to $730.00 and gave the stock an "outperform" rating in a research note on Thursday, July 24th. Robert W. Baird raised their price objective on Lennox International from $600.00 to $668.00 and gave the stock a "neutral" rating in a research note on Thursday, July 17th. UBS Group raised their price objective on Lennox International from $570.00 to $676.00 and gave the stock a "neutral" rating in a research note on Monday. Finally, 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. Four equities research analysts have rated the stock with a sell rating, five have given a hold rating and four have given a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $635.33.

Lennox International Stock Performance

NYSE:LII traded down $1.92 during trading hours on Monday, reaching $613.65. 51,423 shares of the stock were exchanged, compared to its average volume of 408,856. The company has a quick ratio of 0.71, a current ratio of 1.41 and a debt-to-equity ratio of 0.93. The firm has a 50 day simple moving average of $584.77 and a 200-day simple moving average of $585.71. Lennox International has a 52 week low of $500.10 and a 52 week high of $689.44. The stock has a market capitalization of $21.55 billion, a P/E ratio of 26.25, a P/E/G ratio of 2.05 and a beta of 1.13.

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

Lennox International Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, July 15th. Shareholders of record on Friday, May 30th were issued a dividend of $1.30 per share. This represents a $5.20 dividend on an annualized basis and a yield of 0.85%. This is a boost from Lennox International's previous quarterly dividend of $1.15. The ex-dividend date was Monday, June 30th. Lennox International's dividend payout ratio is 22.23%.

Lennox International announced that its board has authorized a share repurchase plan on Thursday, May 22nd that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the construction company to purchase up to 5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its shares are undervalued.

Insider Activity at Lennox International

In related news, CAO Chris Kosel sold 509 shares of the stock in a transaction that occurred on Wednesday, May 7th. The stock was sold at an average price of $568.05, for a total transaction of $289,137.45. Following the completion of the sale, the chief accounting officer owned 1,582 shares in the company, valued at $898,655.10. This represents a 24.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Daniel M. Sessa sold 2,782 shares of the stock in a transaction that occurred on Wednesday, July 23rd. The shares were sold at an average price of $670.04, for a total value of $1,864,051.28. Following the sale, the executive vice president owned 31,574 shares of the company's stock, valued at approximately $21,155,842.96. The trade was a 8.10% decrease in their position. The disclosure for this sale can be found here. 9.73% of the stock is owned by corporate insiders.

Institutional Trading of Lennox International

Hedge funds have recently added to or reduced their stakes in the business. Geode Capital Management LLC increased its stake in Lennox International by 55.7% during the fourth quarter. Geode Capital Management LLC now owns 889,032 shares of the construction company's stock valued at $542,374,000 after acquiring an additional 317,937 shares during the period. GAMMA Investing LLC increased its stake in Lennox International by 69,429.8% during the first quarter. GAMMA Investing LLC now owns 356,688 shares of the construction company's stock valued at $200,041,000 after acquiring an additional 356,175 shares during the period. Amundi increased its stake in Lennox International by 33.1% during the first quarter. Amundi now owns 189,571 shares of the construction company's stock valued at $103,661,000 after acquiring an additional 47,170 shares during the period. Captrust Financial Advisors increased its stake in Lennox International by 500.0% during the fourth quarter. Captrust Financial Advisors now owns 94,086 shares of the construction company's stock valued at $57,326,000 after acquiring an additional 78,406 shares during the period. Finally, Russell Investments Group Ltd. increased its stake in Lennox International by 118.3% during the first quarter. Russell Investments Group Ltd. now owns 92,618 shares of the construction company's stock valued at $51,932,000 after acquiring an additional 50,188 shares during the period. Institutional investors own 67.07% of the company's stock.

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.