NYSE$LII

Lennox International Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Lennox International reported record revenue and profit.

Lennox International reported record revenue of $1.37 billion, up 10%, and a record GAAP EPS of $4.96, up 10% in the second quarter of 2022. The company is raising the low end of its 2022 EPS guidance from $13.50-$14.50 to $13.80-$14.50.

  • Revenue increased by 10% to a record $1.37 billion.
  • GAAP EPS increased by 10% to a record $4.96.
  • Adjusted EPS increased by 9% to a record $5.00.
  • The company is raising the low end of EPS guidance from $13.50-$14.50 to $13.80-$14.50.

Headline financials

Total Revenue

$1.37B

Previous: $1.24B+10.3%
EPS (adj)

$5.00

Previous: $4.57+9.4%
Total Segment Margin

16.8%

Previous: 17.9%-6.1%
Capital Expenditures

-$46.7M

Previous: -$45.5M-2.6%
Free Cash Flow

$131M

Previous: $125M+4.8%
Net Income

$177M

Previous: $170M+4.2%
Operating Income

$227M

Previous: $216M+5.0%
Gross Profit

$397M

Previous: $383M+3.6%
Cash & Equivalents

$57.4M

Previous: $44.5M+29.0%
Total Assets

$2.66B

Previous: $2.2B+20.6%
Stock-Based Comp

$5.9M

Previous: $9M-34.4%

Revenue & EPS history

Lennox · Revenue · Quarterly

$1.37B

Q2 2022+10.3%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Lennox · $1.2B total across 2 segments · Q2 2022

  • Home Comfort Solutions
    $978M+16.6%
  • Building Climate Solutions
    $220M-13.1%

Forward guidance

The company is adjusting 2022 revenue growth guidance from 7-11% to 10-15% and raising the low end of EPS guidance from $13.50-$14.50 to a range of $13.80-$14.50.

Tailwinds

  • Customer demand remains strong.
  • Residential business is performing well and capitalizing on growth opportunities.
  • Refrigeration business is performing well and capitalizing on growth opportunities.
  • Commercial segment performance is improving.
  • Reiterating plans for $400 million of total stock repurchases for the full year.

Headwinds

  • The macroeconomic environment is challenging.
  • Commercial segment is constrained by supply chain shortfall.
  • Commercial segment is constrained by factory inefficiencies.
  • Gross margin was impacted by inflationary pressures.
  • Gross margin was impacted by factory inefficiencies and global supply chain disruptions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.3%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+3.3%

Avg return

30 days after

49%

33 / 68 earnings

Positive

+13.4%

Q3 2014

Best reaction

-12.9%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%+3.9%+1.2%
Q4 2025-4.0%-0.7%+14.3%
Q3 2025-9.8%-8.5%-15.3%
Q1 2025-9.0%-5.0%+1.5%
Q4 2024-8.8%-12.0%-9.3%
Q3 2024+4.4%+3.1%+10.7%
Q2 2024-4.1%+0.1%+2.6%
Q1 2024-0.2%+0.1%+5.6%
Q4 2023-5.2%-5.6%+5.6%
Q3 2023+5.7%+9.2%+22.7%
Q2 2023+8.1%+11.6%+7.4%
Q1 2023+9.7%+9.5%+9.1%
Q4 2022+9.4%+12.1%+4.2%
Q3 2022+1.4%+0.2%+14.2%
Q2 2022+5.5%+5.4%+6.9%
Q1 2022-9.2%-13.6%-16.8%
Q4 2021-4.0%-5.9%-3.5%
Q3 2021-3.0%-4.1%+2.1%
Q2 2021+3.6%+2.8%+3.4%
Q1 2021+1.4%+0.3%+3.6%
Q4 2020-4.3%-3.1%-1.7%
Q3 2020-1.5%-0.0%+2.8%
Q2 2020+2.5%+7.2%+12.9%
Q1 2020-5.9%-4.0%+4.4%
Q4 2019+3.8%+0.7%+9.4%
Q3 2019-2.3%-4.0%+0.8%
Q2 2019-5.2%-5.7%-6.3%
Q1 2019-2.2%+0.3%+2.6%
Q4 2018+1.1%+0.3%+5.0%
Q3 2018+2.2%+3.1%+10.7%
Q2 2018-3.2%-2.4%+3.0%
Q1 2018-4.0%+0.6%+4.4%
Q4 2017+2.5%+1.1%+5.1%
Q3 2017+9.0%+7.2%+8.8%
Q2 2017-5.7%-6.2%-10.4%
Q1 2017-2.1%-4.1%+1.8%
Q4 2016+3.8%+3.7%+5.8%
Q3 2016-3.7%-4.8%-4.4%
Q2 2016+2.0%+2.4%+5.6%
Q1 2016-1.2%
Q4 2015-0.3%
Q3 2015+5.4%
Q2 2015+7.5%
Q1 2015-5.2%
Q4 2014+2.8%
Q3 2014+13.4%
Q2 2014+2.3%
Q1 2014-4.2%
Q4 2013+1.4%
Q3 2013+2.9%
Q2 2013+4.7%
Q1 2013+0.0%
Q4 2012+1.3%
Q3 2012+2.4%
Q2 2012-9.3%
Q1 2012+10.5%
Q4 2011+2.7%
Q4 2008+2.7%
Q3 2011+9.6%
Q2 2011-12.9%
Q1 2010-7.7%
Q1 2011+2.0%
Q4 2010-2.3%
Q3 2009-5.5%
Q3 2010-5.5%
Q4 2009-6.3%
Q2 2010-6.3%
Q2 2009-6.3%

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