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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%.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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