Lennox International Reports Mixed Earnings, Sends Shares Down Nearly 20%
On July 29, Lennox International (NYSE: LII) shares fell nearly 19.9% after the HVAC manufacturer reported mixed second-quarter results that missed revenue expectations despite beating earnings forecasts slightly. The company earned $7.72 per share on sales of $1.5 billion—below analysts' projections for $1.6 billion in revenue and $7.61 per share. Lennox attributed weak performance to a soft residential market, with Home Comfort Solutions declining 7% due to lower volumes despite price increases. While commercial sales rose sharply by 24%, helping offset some of the losses from residential demand, management lowered its full-year earnings forecast by about 3%. The new range is $23–$24 per share—below Wall Street's expectation of $24.52. Lennox reaffirmed an overall 8% sales growth target for 2026 but noted only 3% would come from organic sources, with the rest driven by acquisitions. The stock currently trades at a forward P/E ratio of around 18.4 based on its revised forecast, which is reasonable but not compelling given the lack of earnings growth and weak outlook for this year.
Topics: q2_earnings sales_miss stock_crash