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.
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 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.
- The effective tax rate is still expected to be 21-22% on an adjusted basis for the full year.
- Revenue was down 14%, impacted by the COVID-19 pandemic
Revenue & Expenses
Visualization of income flow from segment revenue to net income