What To Expect From Lennox’s (LII) Q3 Earnings

Climate control solutions innovator Lennox International (NYSE:LII) will be announcing earnings results tomorrow before market open. Here’s what investors should know.

Lennox missed analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $1.45 billion, up 2.8% year on year. It was a slower quarter for the company, with a miss of analysts’ organic revenue estimates and underwhelming earnings guidance for the full year.

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 grow 3.6% year on year to $1.42 billion, slowing from the 15% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $6.01 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lennox has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Lennox’s peers in the building products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AZZ delivered year-on-year revenue growth of 2.6%, meeting analysts’ expectations, and Simpson reported revenues up 1.2%, in line with consensus estimates. AZZ traded down 5.2% following the results.

Read our full analysis of AZZ’s results here and Simpson’s results here.

There has been positive sentiment among investors in the building products segment, with share prices up 2.3% on average over the last month. Lennox is down 2.2% during the same time and is heading into earnings with an average analyst price target of $596.58 (compared to the current share price of $604.26).

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