Lennox Reaches a New 52-Week High - Analyst Blog

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Shares of Lennox International, Inc. ( LII ) hit a 52-week high of $80.69 on Nov 11, and eventually closed at $80.13. Shares of this building products manufacturer have been on a rise since it announced improved year-over-year results for the third quarter of 2013, on Oct 21.

Year-to-date, share prices have recorded a healthy return of 48.6%. The company's long-term estimated earnings per share growth rate is 21.4%. Average volume of shares traded over the last three months came in at 425.2K.

In third-quarter 2013, adjusted earnings per share for the company was $1.30, beating the Zacks Consensus Estimate of $1.26 by 3.2%. Results also surpassed the year-ago earnings by 34.0%. Lennox announced 8.0% year-over-year increase in revenues to $868.0 million in the reported quarter. The year-over-year rise was mainly the result of better volumes and price/mix.

Lennox experienced a year-over-year hike in revenues for two out of three segments. The Residential Heating & Cooling segment's sales increased 12% year over year on the back of better volume and price mix. The Commercial Heating & Cooling segment recorded sales improvement of 9% compared with the year -ago quarter, driven by better volumes. However, lower volumes reduced the Refrigeration segment's sales by 4% year over year.

Based on the results, management reiterated its revenue growth guidance in the range of 6%-8% for 2013. Adjusted earnings per share for the year are estimated in the range of $3.50-$3.75 against $3.45-$3.75 projected earlier.

Lennox also renewed tax rate guidance to the band of 34%-35% for the full year. Capital expenditures guidance for the year was maintained at $60.0 million including stock repurchase plans presently worth $125.0 million.

Other Stocks to Consider

Lennox currently carries a Zacks Rank #3 (Hold). Other stocks worth a watch in the industry include Comfort Systems USA Inc. ( FIX ), CaesarStone Sdot-Yam Ltd. ( CSTE ) and Quanex Building Products Corp. ( NX ). While Comfort Systems and CaesarStone Sdot-Yam carry a Zacks Rank #1 (Strong Buy), Quanex Building Products holds a Zacks Rank #2 (Buy).



CAESAR STONE SD (CSTE): Free Stock Analysis Report

COMFORT SYSTEMS (FIX): Free Stock Analysis Report

LENNOX INTL INC (LII): Free Stock Analysis Report

QUANEX BLDG PRD (NX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CSTE , FIX , LII , NX

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