Lennox Int'l Q2 Adj Profit Tops View, But Sales Miss

By RTT News, 
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(RTTNews.com) - Climate control products maker Lennox International, Inc. ( LII ) reported Monday a profit for the second quarter that grew from last year, reflecting improved revenues at residential and commercial segments.

Adjusted earnings per share from continuing operations topped analysts' expectations by one cent, while quarterly sales missed their estimates by a whisker. The company also narrowed its earnings guidance range for the full-year 2014, while raising annual sales growth outlook.

The company noted that financial results in prior periods have been revised to reflect sold businesses in discontinued operations.

"The company's record 12.3% total segment margin was driven by strong growth and margin expansion in both our Residential and Commercial businesses in the second quarter," Chairman and CEO Todd Bluedorn said in a statement.

The Richardson, Texas-based company reported net income of $73.9 million or $1.49 per share for the second quarter, higher than $64.3 million or $1.26 per share in the prior-year quarter.

Income from continuing operations for the quarter grew to $74.6 million or $1.50 per share from $64.3 million or $1.26 per share last year.

Excluding items, adjusted income from continuing operations for the quarter was $74.9 million or $1.51 per share, compared to $66.5 million or $1.31 per share in the year-ago quarter.

On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $1.50 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales in the quarter increased 5 percent to $960.7 million from $913.10 million in the same quarter last year, but missed twelve Wall Street analysts' consensus estimate of $963.44 million by a whisker. Sales was up 6 percent at constant currency.

Sales at residential heating & cooling grew 11 percent year-over-year and commercial heating & cooling sales were up 5 percent from last year. However, refrigeration sales slid 7 percent from a year ago.

"The upside that we are realizing in Residential and Commercial, however, is being dampened by soft conditions in Refrigeration, where North American supermarket and Australian wholesale businesses have been weak," Bluedorn stated.

Looking ahead to fiscal 2014, Lennox narrowed its guidance range for adjusted income from continuing operations to the range of $4.30 to $4.50 per share from the prior forecast range of $4.20 to $4.60 per share. However, the company raised its sales growth forecast to between 5 to 7 percent from the previous outlook of 2 to 6 percent.

Street is currently looking for full-year 2014 earnings of $4.52 per share on revenue growth of 5.6 percent.

LII closed Friday's regular trading session at $87.01, up $1.34 on a volume of 0.43 million shares.

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This article appears in: Earnings

Referenced Stocks: LII , TRI

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