Loading...
•
Jun 30, 2020
Lennox Q2 2020 Earnings Report
Lennox International's Q2 2020 results were impacted by the COVID-19 pandemic, with revenue down 14% and adjusted EPS down 21%, but the company raised its full-year guidance.
Key Takeaways
Lennox International reported a 14% decrease in revenue for Q2 2020 due to the COVID-19 pandemic. GAAP EPS decreased by 7%, and adjusted EPS decreased by 21%. Despite these challenges, the company is raising its 2020 guidance for adjusted revenue and EPS.
Revenue decreased by 14% due to the COVID-19 pandemic.
GAAP EPS from continuing operations decreased by 7% to $2.62.
Adjusted EPS from continuing operations decreased by 21% to $2.97.
The company is raising its 2020 guidance for adjusted revenue and EPS.
Revenue by Segment
Forward Guidance
Lennox International is raising its 2020 guidance for adjusted revenue to a decline of 10-15% and adjusted EPS from continuing operations to $7.90-$8.70.
Positive Outlook
- Raising guidance for adjusted revenue to be down 10-15% from the prior year compared to previous guidance to be down 11-17%.
- Raising guidance for GAAP EPS from continuing operations to $7.31-$8.11 from previous guidance of $7.07-$8.07.
- Raising guidance for adjusted EPS from continuing operations to $7.90-$8.70 from previous guidance of $7.50-$8.50.
- Corporate expense is still expected to be approximately $75 million.
- Guidance for free cash flow remains approximately $340 million.
Challenges Ahead
- Highly uncertain market conditions in the second half of the year.
- The company’s stock repurchase program currently remains on hold.
- Capital expenditures are still targeted to be $120 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...