Loading...
•
Jun 30, 2021
Lennox Q2 2021 Earnings Report
Lennox International reported record revenue and profit in the second quarter of 2021.
Key Takeaways
Lennox International reported a record revenue of $1.24 billion, up 32% compared to the prior-year period. GAAP EPS from continuing operations increased by 72% to a record $4.51, and adjusted EPS from continuing operations increased by 54% to a record $4.57. The company also raised its full-year guidance for revenue growth and EPS.
Revenue increased by 32% to a record $1.24 billion, driven by strong growth in all businesses.
GAAP EPS from continuing operations rose by 72% to a record $4.51.
Adjusted EPS from continuing operations increased by 54% to a record $4.57.
The company raised its full-year guidance for revenue growth from 7-11% to 12-16% and for GAAP EPS from $11.33-$11.93 to $11.97-$12.57.
Revenue by Segment
Forward Guidance
Lennox International raised its 2021 guidance for revenue, earnings, and free cash flow based on strong market growth and company performance.
Positive Outlook
- Raising 2021 guidance for revenue growth from 7-11% to 11-15% at constant currency, and now 12-16% at actual currency.
- Raising 2021 guidance for GAAP EPS from continuing operations from $11.33-$11.93 to $11.97-$12.57.
- Raising 2021 guidance for adjusted EPS from continuing operations from $11.40-$12.00 to $12.10-$12.70.
- Capital expenditures are still planned to be approximately $135 million.
- Raising guidance for free cash flow from approximately $375 million to approximately $400 million for the full year.
Challenges Ahead
- Corporate expense is now expected to be approximately $100 million compared to prior guidance of $95 million.
- The effective tax rate is now expected to be approximately 20% on an adjusted basis for the full year compared to prior guidance of approximately 21%.
- 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
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...