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Mar 31, 2021
Lennox Q1 2021 Earnings Report
Lennox International reported record first quarter revenue and profit, driven by double-digit revenue growth and margin expansion across all three business segments.
Key Takeaways
Lennox International reported a record first quarter with revenue up 29% to $931 million and GAAP EPS up 588% to $2.20. The company is raising its full-year guidance for revenue growth and EPS.
Revenue increased by 29% to a record $931 million, led by 37% growth in the Residential segment.
GAAP EPS from continuing operations rose by 588% to a record $2.20.
Adjusted EPS from continuing operations increased by 305% to a record $2.27.
The company is raising its 2021 guidance for revenue growth from 4-8% to 7-11%.
Lennox
Lennox
Lennox Revenue by Segment
Revenue by Segment
Home Comfort Solutions Revenue
CapyFin.comBuilding Climate Solutions Revenue
CapyFin.com Forward Guidance
Lennox International is raising its 2021 guidance for revenue, EPS, and free cash flow.
Positive Outlook
- Raising guidance for revenue growth from 4-8% to 7-11%; neutral foreign exchange.
- Raising guidance for GAAP EPS from continuing operations from $10.55-$11.15 to $11.33-$11.93.
- Raising guidance for adjusted EPS from continuing operations from $10.55-$11.15 to $11.40-$12.00.
- The effective tax rate is still expected to be approximately 21% on an adjusted basis for the full year.
- Raising guidance for free cash flow from approximately $325 million to approximately $375 million for the full year.
Challenges Ahead
- Corporate expense is now expected to be approximately $95 million compared to prior guidance of $90 million.
- Risks associated with the economic impact of the COVID-19 pandemic.
- Risks that the North American unitary HVAC and refrigeration markets perform worse than current assumptions.
- The impact of higher raw material prices.
- The impact of new or increased trade tariffs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income