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Dec 31, 2019

Lennox Q4 2019 Earnings Report

Lennox International reported fourth quarter results, with revenue up and EPS records.

Key Takeaways

Lennox International reported a 5% increase in fourth-quarter revenue to $885 million and a 57% increase in GAAP EPS to $2.92. The company also reiterates 2020 guidance for adjusted revenue growth of 4-8% and GAAP and adjusted EPS from continuing operations of $11.30-$11.90.

Fourth-quarter revenue increased by 5% on a GAAP basis, reaching $885 million.

GAAP EPS from continuing operations rose by 57% to a record $2.92.

Adjusted EPS from continuing operations increased by 24% to a record $2.45.

The company reiterates 2020 guidance for adjusted revenue growth of 4-8%.

Total Revenue
$885M
Previous year: $844M
+4.9%
EPS
$2.45
Previous year: $1.93
+26.9%
Total Segment Margin
15.1%
Home Comfort Margin
19.6%
Building Climate Margin
19%
Gross Profit
$248M
Previous year: $225M
+10.4%
Cash and Equivalents
$37.3M
Previous year: $46.3M
-19.4%
Free Cash Flow
$371M
Previous year: $230M
+61.5%
Total Assets
$2.03B
Previous year: $1.82B
+12.0%

Lennox

Lennox

Lennox Revenue by Segment

Forward Guidance

Lennox International is well-positioned for a year of strong growth and profitability and reiterates guidance for 2020.

Positive Outlook

  • Adjusted revenue growth of 4-8%
  • GAAP and adjusted EPS from continuing operations of $11.30-$11.90
  • Corporate expenses of approximately $90 million
  • Effective tax rate of 21-22% on an adjusted basis for the full year
  • $400 million of stock repurchases

Revenue & Expenses

Visualization of income flow from segment revenue to net income