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Sep 30, 2021
Lennox Q3 2021 Earnings Report
Reported third quarter results with revenue up slightly but impacted by supply chain and Covid-19 disruptions.
Key Takeaways
Lennox International reported a slight increase in revenue to $1.06 billion in the third quarter, a record for the company. However, the financial performance was negatively impacted by global supply chain and Covid-19 disruptions, which reduced revenue by approximately $75 million and operating profit by approximately $25 million.
Revenue reached a record $1.06 billion, slightly up from the prior-year quarter.
GAAP EPS from continuing operations was relatively flat at $3.41.
Adjusted EPS from continuing operations decreased by 4% to $3.40, including a $0.55 negative impact from supply chain and Covid-19 disruptions.
The company repurchased $200 million of stock during the quarter.
Revenue by Segment
Forward Guidance
Lennox International is narrowing its 2021 guidance and now expects revenue growth of 13-15% and adjusted EPS from continuing operations of $12.10-$12.30 for the full year.
Positive Outlook
- Demand remains strong across all end markets.
- Revenue growth is expected to be between 13-15% for the full year.
- Adjusted EPS from continuing operations is expected to be between $12.10-$12.30 for the full year.
- Foreign exchange is still expected to be 1% favorable to revenue growth for the full year.
- Corporate expense guidance updated from approximately $100 million to $95 million.
Challenges Ahead
- Global supply chain bottlenecks and shortages are not expected to be resolved soon.
- Covid-19 adds more complexity to labor and production disruptions.
- Global supply chain and Covid-19 disruptions to production and labor force negatively impacted third-quarter revenue by approximately $75 million and operating profit by approximately $25 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
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