Lennox Int'l beats by $0.07, beats on revs; guides FY17 EPS in-line, revs in-line
- Reports Q2 (Jun) earnings of $2.83 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $2.76; revenues rose 8.1% year/year to $1.10 bln vs the $1.09 bln Capital IQ Consensus.
- Co issues in-line guidance for FY17, sees EPS of $7.75-8.15, excluding non-recurring items, vs. $7.95 Capital IQ Consensus Estimate and vs prior guidance of $7.55-8.15; sees FY17 revenue growth of +4-7%, up from prior guidance of +3-7%; the new guidance computes as $3.79-3.90 bln vs. $3.84 bln Capital IQ Consensus Estimate.
- "In our Residential business, revenue was up 14% on strength in both replacement and new construction business. Segment margin expanded 130 basis points to 21.5%, and segment profit rose 21%. Our Residential business set new all-time highs for revenue, segment margin and profit. In our Commercial business, we have seen lumpy customer demand and mix in the first half of the year. After a record [Q1] with strong growth in revenue, margin, and profit, Commercial revenue was up 3% at constant currency in [Q2], with segment margin of 17.3% down 140 basis points."
- Looking ahead to 2H17, co expects Commercial revenue, margin and profit to be up from the prior-year period.
- Looking ahead for the company overall, co continues to expect strong growth for a year of record revenue and profit, led by the strength in its Residential business. Given the company's first-half performance and outlook for 2H17, co is raising the low end of its 2017 guidance for revenue and adjusted EPS.