NYSE$LII

Lennox International Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Lennox reported record fourth quarter and full year results, increased long-term financial targets, and provided FY 2024 guidance.

Lennox reported a strong fourth quarter with revenue up 6% to $1.2 billion and GAAP diluted EPS up 52% to $4.04. The company's performance was driven by its Lennox transformation strategy, successful implementation of new regulations, improved factory production, and pricing excellence programs.

  • Revenue increased by 6% to $1.2 billion, with core revenue (excluding European Operations) up 7% to $1.1 billion.
  • GAAP diluted EPS rose by 52% to $4.04, while adjusted diluted EPS increased by 41% to $3.63.
  • Operating cash flow surged by 132% to $306 million.
  • Building Climate Solutions segment revenue increased 19%, driven by both pricing and sales volume gains.

Headline financials

Total Revenue

$1.16B

Previous: $1.09B+5.6%
EPS (adj)

$3.63

Previous: $2.63+38.0%
Capital Expenditures

-$125M

Previous: $34.1M-467.2%
Net Income

$145M

Previous: $94.4M+53.6%
Operating Income

$185M

Previous: $132M+40.2%
Gross Profit

$355M

Previous: $285M+24.5%
Stock-Based Comp

$6.6M

Previous: $5.4M+22.2%

Revenue & EPS history

Lennox · Revenue · Quarterly

$1.16B

Q4 2023+5.6%vs Q4 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Lennox · $990M total across 2 segments · Q1 2023

  • Home Comfort Solutions
    $681M-0.2%
  • Building Climate Solutions
    $309M+64.6%

Forward guidance

For full year 2024, core revenue is anticipated to increase by approximately 7% mostly due to price and mix as sales volumes are forecasted to be relatively flat. Adjusted earnings per share is expected to be within the range of $18.50 to $20.00. Capital expenditures are projected to be approximately $175 million, and Free Cash Flow is estimated to fall within the range of $500 million to $600 million.

Tailwinds

  • Core revenue is anticipated to increase by approximately 7%.
  • Revenue increase mostly due to price and mix.
  • Sales volumes are forecasted to be relatively flat.
  • Adjusted earnings per share is expected to be within the range of $18.50 to $20.00.
  • Free Cash Flow is estimated to fall within the range of $500 million to $600 million.

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 2023

Historical avgQ4 2023

-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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