Lennox International Reports Mixed Earnings, Stock Drops Nearly 20%
Lennox International (NYSE: LII) saw its stock fall nearly 20% in early trading after reporting mixed second-quarter results. The HVAC manufacturer reported earnings of $7.72 per share, slightly above the expected $7.61, but revenue came in at $1.5 billion, below forecasts for $1.6 billion. Lennox attributed weak performance to a slowdown in residential sales, which declined by 7% due to lower volumes despite price increases. Commercial sales rose sharply by 24%, helping offset the drop in home-related business and contributing to an overall modest revenue increase of 3%. However, operating profit grew only 2%, with GAAP earnings nearly flat. Management lowered its full-year earnings forecast from $24.52 per share to a range between $23 and $24. The company reaffirmed its long-term sales growth target for 2026 but signaled little improvement in the near term, contributing to investor disappointment.
Tickers: $LII
Topics: Earnings HVAC Industry Sales Performance