Climate control solutions innovator Lennox International (NYSE:LII) will be reporting earnings this Wednesday morning. Here’s what you need to know.
Lennox beat analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $1.07 billion, up 2.4% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a decent beat of analysts’ EPS estimates.
Is Lennox a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Lennox’s revenue to be flat year on year at $1.46 billion, slowing from the 2.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $6.87 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 6 upward revisions over the last 30 days (we track 14 analysts). Lennox has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Lennox’s peers in the building products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Insteel delivered year-on-year revenue growth of 23.4%, beating analysts’ expectations by 2.2%, and AZZ reported revenues up 2.1%, falling short of estimates by 3.2%. Insteel traded down 5.8% following the results while AZZ was up 5.2%.
Read our full analysis of Insteel’s results here and AZZ’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 5.9% on average over the last month. Lennox is up 6.6% during the same time and is heading into earnings with an average analyst price target of $582.06 (compared to the current share price of $601.18).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.