By RTT News, October 21, 2013, 10:36:00 AM EDT
(RTTNews.com) - Lennox International Inc. ( LII ), a maker of climate control products, Monday reported an increase in third-quarter profit, reflecting higher revenues and reduced loss from discontinued operations. Adjusted earnings per share beat analysts' estimates, while revenues missed view.
The company lifted the lower end of its earnings per share outlook for full-year 2013, and reiterated its revenue growth view. Lennox also raised its stock repurchase guidance to $125 million for 2013, from $100 million, including plans to repurchase $59 million in the fourth quarter.
For the third quarter, the company posted net income of $64.3 million or $1.27 per share, higher than $29.4 million or $0.57 per share in the previous year. Earnings per share from continuing operations were $1.30 for the recent quarter, while the company reported $0.97 per share a year earlier.
On average, twelve analysts polled by Thomson Reuters expected the company to earn $1.28 per share for the quarter. Analysts' estimates typically exclude one-time items.
Lennox said it has revised the financial results in prior periods to reflect sold businesses in discontinued operations.
Revenues for the period increased 7 percent to $868 million from prior year's $809.7 million. Street expected the company to report revenues of $877.87 million. Revenues were up 8 percent at constant currency, led by 13 percent Residential growth.
Chairman and CEO Todd Bluedorn stated, "In our Residential business, revenue was up 13% at constant currency, led by strong double-digit growth in replacement business with favorable price and mix."
In Commercial business, revenue was up 8 percent at constant currency, while in Refrigeration, revenue decreased 2 percent.
For full-year 2013, the company now expects adjusted earnings per share from continuing operations to be in the range of $3.50 to $3.75, compare to the prior forecast of $3.45 to $3.75 per share. GAAP earnings from continuing operations are expected to be between $3.43 and $3.68 per share, compared to the $3.38 to $3.68 per share range projected earlier.
Analysts expect the company to report earnings of $3.64 per share for the year.
Lennox reiterated its revenue guidance of 6 to 8 percent growth in the year.
LII is currently trading at $76.88, up 1.88 percent.
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