NYSE$LII
Lennox International Inc · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Lennox International reported record third quarter revenue and profit, raising 2020 guidance.
Lennox International reported a record third-quarter performance, with revenue reaching $1.06 billion, a 2% increase. GAAP EPS from continuing operations rose by 16% to a record $3.42, and adjusted EPS increased by 6% to a record $3.53. The company is raising its full-year guidance for adjusted revenue and EPS.
- Record third-quarter revenue of $1.06 billion, up 2%.
- GAAP EPS from continuing operations increased 16% to $3.42.
- Adjusted EPS from continuing operations increased 6% to $3.53.
- Residential revenue rose 13% and set a new record for any quarter at $722 million.
Headline financials
Revenue & EPS history
Lennox · Revenue · Quarterly
$1.06B
Revenue by segment
Lennox · $930M total across 2 segments · Q3 2020
- Home Comfort Solutions$722M+13.2%77.6%
- Building Climate Solutions$208M-17.9%22.4%
Forward guidance
Lennox International is raising its full-year guidance for revenue and EPS from continuing operations.
Tailwinds
- Raising guidance for adjusted revenue to be down 5-9% from the prior year compared to previous guidance to be down 10-15%.
- Raising guidance for GAAP EPS from continuing operations to $8.35-$8.95 from previous guidance of $7.31-$8.11.
- Raising guidance for adjusted EPS from continuing operations to $9.05-$9.65 from previous guidance of $7.90-$8.70.
- Capital expenditures are now targeted to be approximately $100 million compared to previous guidance of approximately $120 million.
- Free cash flow is now expected to be approximately $425 million for the full year, up from prior guidance of approximately $340 million.
Headwinds
- We continue to face highly uncertain economic conditions in the fourth quarter and remain cautious on the potential impact from the pandemic heading into the winter season.
- Corporate expense is now expected to be approximately $90 million, primarily due to higher incentive compensation, compared to prior guidance of $75 million.
- The effective tax rate is now expected to be 19-20% on an adjusted basis for the full year compared to prior guidance of 21-22%.
- The company’s remaining 2020 stock repurchase program of $300 million currently remains on hold; the company repurchased $100 million of stock in the first quarter.
- Commercial and Refrigeration continued to be more impacted than Residential from the pandemic
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 Q3 2020
-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
| Quarter | Report date | Reaction (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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