After reporting impressive results for the first quarter 2013,
Lennox International, Inc.
) recently made another major announcement of an increase in its
quarterly dividend rate.
The new dividend rate has been fixed at 24 cents, an increase of
20% over the previous rate of 20 cents and will be paid on July
15, 2013 to shareholders of record as on June 28, 2013. The
revised rate equates to an annual dividend rate of 96 cents per
Consistent dividend payments with occasional increases and share
buybacks have been the company's favoured mode of rewarding its
shareholders over time. Prior to this increase, in Sep 2012,
Lennox International made a similar announcement of an 11%
increase in its quarterly dividend rate surging from 18 cents to
20 cents. Share buyback program worth $300 million was approved
in Dec 2012, which was an addition to its $71 million program
pending under an earlier authorization that time.
If we steal a look into the results of the quarter ended Mar 31,
2013, we find that Lennox International repurchased shares worth
$4.2 million in the quarter while dividend payments were nil.
Management for 2013 anticipates repurchasing of shares worth $100
million and lowering its share count to 50 million at the end of
Apart from the capital deployment actions of Lennox
International, a brief discussion on the financial results of the
company's first quarter 2013 is also given below:
The company's earnings per share in the quarter came in at 33
cents, up 74% year over year and 22.2% above the Zacks Consensus
Estimate of 27 cents.
Results on a year-over-year basis benefited from a 9% top-line
growth, partially offset by 6.9% and 10.1% increase in costs of
sales and selling, general and administrative expenses,
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LENNOX INTL INC (LII): Free Stock Analysis
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The Zacks Consensus Estimate for Lennox International currently
stands at $1.18 for the second quarter 2013, reflecting an
increase of 22.6% year over year. Earnings Estimate for 2013 and
2014 are at $3.44 and $4.02, up 27.3% and 17.0%, respectively.
Lennox International currently has a market capitalization of
$3.2 billion and carries a Zacks Rank #2 (Buy). Other stocks to
watch out for are
Comfort Systems USA Inc.
Honeywell International Inc.
Compass Diversified Holdings
), each with a Zacks Rank #2 (Buy).