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.
Over the decades, small-cap stocks, like Lennox International, have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Lennox International to My Watchlist.
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.