NYSE$LII

Lennox International Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Lennox International reported record fourth quarter revenue and record cash flow for the year.

Lennox International reported a record fourth-quarter revenue of $914 million, up 3% year-over-year. GAAP EPS from continuing operations was $2.91, while adjusted EPS from continuing operations increased by 18% to a record $2.89.

  • Fourth-quarter revenue reached a record $914 million, a 3% increase.
  • GAAP EPS from continuing operations was $2.91, compared to $2.92 in the prior year.
  • Adjusted EPS from continuing operations rose 18% to a record $2.89.
  • The company reiterates 2021 guidance for adjusted revenue growth of 4-8% and GAAP and adjusted EPS from continuing operations of $10.55-$11.15.

Headline financials

Total Revenue

$914M

Previous: $885M+3.3%
EPS (adj)

$2.89

Previous: $2.45+18.0%
Total Segment Margin

15.2%

Previous: 15.1%+0.7%
Capital Expenditures

$22.6M

Previous: $28.6M-21.0%
Free Cash Flow

$535M

Previous: $371M+44.0%
Net Income

$112M

Previous: $114M-2.0%
Operating Income

$139M

Previous: $192M-27.5%
Gross Profit

$275M

Previous: $248M+11.1%
Cash & Equivalents

$124M

Previous: $37.3M+232.2%
Total Assets

$2.03B

Previous: $2.03B-0.1%
Stock-Based Comp

$5.9M

Previous: $5.7M+3.5%

Revenue & EPS history

Lennox · Revenue · Quarterly

$914M

Q4 2020+3.3%vs Q4 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Lennox · $779M total across 2 segments · Q4 2020

  • Home Comfort Solutions
    $553M+10.8%
  • Building Climate Solutions
    $226M-12.9%

Forward guidance

Lennox International reiterates its financial guidance for 2021, including revenue growth of 4-8% and GAAP and adjusted EPS from continuing operations of $10.55-$11.15.

Tailwinds

  • Revenue growth of 4-8%
  • GAAP and adjusted EPS from continuing operations of $10.55-$11.15
  • Corporate expenses of approximately $90 million
  • Effective tax rate of approximately 21% on an adjusted basis for the full year
  • Capital expenditures of approximately $135 million, including $25 million funded by insurance proceeds previously received

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 Q4 2020

Historical avgQ4 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

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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