S& P 500 hits all time highs U.S.-Japan trade deal optimism
DALLAS - Lennox (NYSE:LII) reported second-quarter earnings that surpassed analyst expectations on Wednesday, with adjusted earnings per share of $7.82, beating the consensus estimate of $6.86 by $0.96.
Lennox shares were essentially flat, edging up just 0.01% in pre-market trading following the release.
Revenue for the quarter came in at $1.5 billion, slightly above analyst projections of $1.47 billion and up 3% YoY.
The climate control solutions provider saw significant margin expansion during the quarter, with segment profit increasing 11% to $354 million and segment margin improving by 170 basis points to 23.6%.
"We delivered revenue growth and margin expansion in both segments by skillfully navigating turbulent external conditions," said CEO Alok Maskara. "Our team’s agility drove productivity and targeted cost actions to offset inflationary pressures, ensuring our pricing remains aligned with the value we deliver."
The company’s Home Comfort Solutions segment, which represents about two-thirds of total revenue, grew 3% with segment profit margins expanding by 200 basis points. Meanwhile, the Building Climate Solutions segment saw revenue increase by 5% with margins also improving.
Based on the strong performance, Lennox raised its full-year guidance, now expecting revenue growth of approximately 3% and adjusted earnings per share between $23.25 and $24.25, above the analyst consensus of $22.86.
Operating cash flow for the quarter was $87 million, down from $184 million in the prior-year period. The company repurchased $210 million worth of shares during the quarter.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.