NYSE$LII

Lennox International Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Lennox International reported a record fourth-quarter revenue and EPS despite challenges from fewer days, Covid-19, and supply chain disruptions.

Lennox International reported a 6% increase in fourth-quarter revenue, reaching a record $965 million. GAAP EPS was $2.27, while adjusted EPS was $2.35. The results were impacted by 6% fewer days in the quarter, as well as Covid-19 and global supply chain disruptions.

  • Fourth-quarter revenue increased by 6% to a record $965 million.
  • GAAP EPS from continuing operations was $2.27, compared to $2.91 in the prior-year quarter.
  • Adjusted EPS from continuing operations was $2.35, compared to $2.89 in the prior-year quarter.
  • Full year 2021 revenue was up 15% to a record $4.2 billion.

Headline financials

Total Revenue

$965M

Previous: $914M+5.6%
EPS (adj)

$2.35

Previous: $2.89-18.7%
Capital Expenditures

$38.3M

Previous: $22.6M+69.5%
Free Cash Flow

$80.9M

Previous: $535M-84.9%
Net Income

$83.6M

Previous: $112M-25.2%
Operating Income

$97.6M

Previous: $139M-29.8%
Gross Profit

$254M

Previous: $275M-7.7%
Cash & Equivalents

$31M

Previous: $124M-75.0%
Total Assets

$2.17B

Previous: $2.03B+6.9%
Stock-Based Comp

$7.5M

Previous: $5.9M+27.1%

Revenue & EPS history

Lennox · Revenue · Quarterly

$965M

Q4 2021+5.6%vs Q4 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Lennox · $822M total across 2 segments · Q4 2021

  • Home Comfort Solutions
    $620M+12.2%
  • Building Climate Solutions
    $201M-10.9%

Forward guidance

The company is reiterating 2022 guidance for revenue growth of 5-10% and raising 2022 guidance for GAAP and adjusted EPS from continuing operations from $13.40-$14.40 to $13.50-$14.50.

Tailwinds

  • Reiterating guidance for revenue growth of 5-10%.
  • Raising guidance for GAAP and adjusted EPS from continuing operations from $13.40-$14.40 to $13.50-$14.50.
  • Reflecting the net benefit of lower effective tax rate guidance of 18-20%.
  • Reiterating guidance for capital expenditures of approximately $125 million.
  • Reiterating plans for $400 million of stock repurchases for the year.

Headwinds

  • Guidance reflects higher interest expense assumptions.
  • The company faces risks related to raw material prices and supply chain disruptions.
  • The company is exposed to risks related to trade tariffs.
  • The company is exposed to economic conditions in its markets.
  • The company is exposed to any resurgence of the COVID-19 pandemic and its economic impact.

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 2021

Historical avgQ4 2021

-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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