The 10-second takeaway
For the quarter ended March 31 (Q1), Lennox International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew.
Gross margins dropped, operating margins grew, net margins grew.
Lennox International notched revenue of $668.4 million. The eight analysts polled by S&P Capital IQ wanted to see a top line of $636.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.33. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.27 per share. Non-GAAP EPS of $0.33 for Q1 were much higher than the prior-year quarter's $0.01 per share. (The prior-year quarter included -$0.11 per share in earnings from discontinued operations.) GAAP EPS were $0.16 for Q1 compared to -$0.12 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.2%, 10 basis points worse than the prior-year quarter. Operating margin was 3.8%, 320 basis points better than the prior-year quarter. Net margin was 1.2%, 210 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $878.3 million. On the bottom line, the average EPS estimate is $1.19.
Next year's average estimate for revenue is $3.11 billion. The average EPS estimate is $3.42.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lennox International is hold, with an average price target of $61.57.
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