The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Lennox International missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Lennox International notched revenue of $756.0 million. The seven analysts polled by S&P Capital IQ foresaw a top line of $801.5 million. Sales were 0.8% lower than the prior-year quarter's $762.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.51. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.49 per share on the same basis. GAAP EPS of $0.32 for Q4 were 37% lower than the prior-year quarter's $0.51 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 25.1%, 380 basis points worse than the prior-year quarter. Operating margin was 5.7%, 160 basis points worse than the prior-year quarter. Net margin was 2.2%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $716.3 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $3.45 billion. The average EPS estimate is $2.40.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lennox International is hold, with an average price target of $36.57.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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