William Blair Issues Positive Estimate for LII 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) - Equities researchers at William Blair upped their Q3 2025 EPS estimates for Lennox International in a research note issued to investors on Wednesday, July 23rd. William Blair analyst R. Merkel now forecasts that the construction company will earn $7.46 per share for the quarter, up from their prior estimate 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.

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

Other equities analysts also recently issued reports about the stock. Morgan Stanley lowered their target price on shares of Lennox International from $585.00 to $450.00 and set an "underweight" rating on the stock in a research report on Thursday, April 24th. Oppenheimer raised their price target on Lennox International from $650.00 to $730.00 and gave the company an "outperform" rating in a research report on Thursday. Barclays increased their target price on shares of Lennox International from $696.00 to $753.00 and gave the company an "overweight" rating in a research note on Thursday. UBS Group reduced their target price on shares of Lennox International from $625.00 to $570.00 and set a "neutral" rating for the company in a research note on Thursday, April 24th. Finally, JPMorgan Chase & Co. increased their target price on shares of Lennox International from $455.00 to $549.00 and gave the company an "underweight" rating in a research note on Friday, May 16th. Four analysts have rated the stock with a sell rating, five have given a hold rating and four have issued a buy rating to the stock. According to MarketBeat, Lennox International has an average rating of "Hold" and an average price target of $626.50.

Lennox International Trading Down 0.5%

NYSE LII opened at $660.92 on Monday. Lennox International has a 1-year low of $500.10 and a 1-year high of $689.44. The company has a current ratio of 1.41, a quick ratio of 0.71 and a debt-to-equity ratio of 0.93. The company has a market capitalization of $23.21 billion, a PE ratio of 28.26, a price-to-earnings-growth ratio of 2.12 and a beta of 1.13. The firm's fifty day simple moving average is $581.98 and its 200-day simple moving average is $584.82.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. City Holding Co. bought a new position in shares of Lennox International in the first quarter valued at approximately $35,000. Thurston Springer Miller Herd & Titak Inc. raised its stake in shares of Lennox International by 175.9% in the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 80 shares of the construction company's stock valued at $46,000 after acquiring an additional 51 shares during the last quarter. Sentry Investment Management LLC bought a new position in shares of Lennox International in the first quarter valued at approximately $43,000. Bessemer Group Inc. raised its stake in shares of Lennox International by 50.8% in the fourth quarter. Bessemer Group Inc. now owns 98 shares of the construction company's stock valued at $60,000 after acquiring an additional 33 shares during the last quarter. Finally, Steph & Co. bought a new position in shares of Lennox International in the second quarter valued at approximately $80,000. Institutional investors own 67.07% of the company's stock.

Insider Transactions at Lennox International

In other Lennox International news, CAO Chris Kosel sold 509 shares of the firm's stock in a transaction dated Wednesday, May 7th. The shares were sold at an average price of $568.05, for a total transaction of $289,137.45. Following the completion of the transaction, the chief accounting officer owned 1,582 shares in the company, valued at $898,655.10. This trade represents a 24.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Daniel M. Sessa sold 2,782 shares of the firm's stock in a transaction dated 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 transaction, the executive vice president owned 31,574 shares of the company's stock, valued at approximately $21,155,842.96. This represents a 8.10% decrease in their position. The disclosure for this sale can be found here. 10.40% of the stock is owned by company insiders.

Lennox International Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 15th. Shareholders of record on Friday, May 30th were paid a dividend of $1.30 per share. This is a boost from Lennox International's previous quarterly dividend of $1.15. The ex-dividend date of this dividend was Monday, June 30th. This represents a $5.20 dividend on an annualized basis and a yield of 0.79%. Lennox International's dividend payout ratio (DPR) is currently 22.23%.

Lennox International announced that its Board of Directors has authorized a share repurchase plan on Thursday, May 22nd that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the construction company to buy up to 5% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's board of directors believes its stock is undervalued.

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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