Building products company,
Lennox International, Inc.
) is set to report fourth-quarter 2013 results on Feb 5, before
the opening bell. Last quarter, it posted a 3.17% positive
surprise. Let's see how things are shaping up for this
Factors to Consider
In the third quarter of 2013, Lennox reported impressive
results, with a year-over-year increase in earnings per share as
well as revenues. On a constant currency basis, revenues in the
quarter grew 8% year over year to $868.0 million, as a result of
better volumes and price/mix. Moreover, the company recorded
gross margin of 27.4%, up 210 basis points year over year.
Exiting the third quarter, management maintained the revenue
guidance while increasing the lower end of expected earnings per
share for full-year 2013. Sales in the year 2013 are expected to
grow 6% to 8%. Also, adjusted earnings per share for the year are
currently expected in the range of $3.50-$3.75 against
$3.45-$3.75 expected earlier.
Our proven model does not conclusively show that Lennox is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here, as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 73 cents. Hence, the difference is 0.00%.
Lennox's Zacks Rank #2 (Buy) when combined with a 0.00% ESP makes
surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing a negative estimate
Others Stocks to Consider
Here are some other building products companies you may want
to consider as our model shows they have the right combination of
elements to post an earnings beat this quarter:
Eaton Corporation plc
), Earnings ESP of +1.89% and a Zacks Rank #2
), Earnings ESP of +4.00% and a Zacks Rank #2
Honeywell International Inc.
), Earnings ESP of +0.79% and a Zacks Rank #3 (Hold).
EATON CORP PLC (ETN): Free Stock Analysis
GORMAN RUPP CO (GRC): Free Stock Analysis
HONEYWELL INTL (HON): Free Stock Analysis
LENNOX INTL INC (LII): Free Stock Analysis
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