We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lennox (LII) Beats on Q1 Earnings, Reiterates 2018 Outlook
Read MoreHide Full Article
Lennox International, Inc. (LII - Free Report) reported better-than-expected results for first-quarter 2018. This stellar performance mainly stemmed from a healthy residential business.
Earnings/Revenues
Quarterly earnings came in at $1.13 per share, outpacing the Zacks Consensus Estimate of $1.08. The bottom line also came in higher than the year-ago tally of 85 cents per share.
Net sales during the reported quarter came in at $834.8 million, comfortably beating the Zacks Consensus Estimate of $815 million. Also, the revenue figure improved 5.2% year over year.
Segmental Details
Residential Heating & Cooling revenues came in at $454 million, up 8% year over year. The upswing primarily stemmed from growth in the replacement business.
Commercial Heating & Cooling revenues came in at $206 million, up 5% year over year. This uptick was backed by growth in the regional and local replacement business.
However, Refrigeration sales dipped 2% year over year to $129 million.
Lennox International, Inc. Price, Consensus and EPS Surprise
Cost of goods sold during the quarter was $611.6 million, up 5% year over year. Adjusted gross profit margin was 26.6%, up 30 basis points (bps) year over year.
Selling, general and administrative expenses during the quarter totaled $155.2 million, up from the $152.4 million reported in the year-ago quarter. Adjusted operating profit margin was 6.7%, down 140 bps year over year.
Balance Sheet/Cash Flow
Exiting the first quarter, the company had cash and cash equivalents of $57.1 million, as against the $68.2 million recorded at the end of 2017. Long-term debt was $1,258.3 million, higher than the $970.5 million reported as of Dec 31, 2017.
In the first three months of 2018, Lennox International used $83.5 million cash in operating activities, as against the $107.6 million cash used in the year-ago period. Capital expenditures during the reported quarter were $23 million, lower than the $25 million incurred in first-quarter 2017.
Outlook
Lennox International intends to boost its near-term competency on the back of ongoing growth-based investments. The company also remains on track to increase shareholders’ returns in the near future.
This Zacks Rank #3 (Hold) company projects top-line growth for full-year 2018 at 4-8%, higher than the previous guidance of 3-7%. However, the adjusted earrings guidance has been reiterated at the $9.75-$10.35 per share range for the year.
Boise Cascade, L.L.C. (BCC - Free Report) also flaunts a Zacks Rank #1. The company’s EPS is estimated to be up 6.70%, over the next three to five years.
AAON, Inc. (AAON - Free Report) carries a Zacks Rank of 2 (Buy). The company’s EPS will likely be up 15% during the same time frame.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Lennox (LII) Beats on Q1 Earnings, Reiterates 2018 Outlook
Lennox International, Inc. (LII - Free Report) reported better-than-expected results for first-quarter 2018. This stellar performance mainly stemmed from a healthy residential business.
Earnings/Revenues
Quarterly earnings came in at $1.13 per share, outpacing the Zacks Consensus Estimate of $1.08. The bottom line also came in higher than the year-ago tally of 85 cents per share.
Net sales during the reported quarter came in at $834.8 million, comfortably beating the Zacks Consensus Estimate of $815 million. Also, the revenue figure improved 5.2% year over year.
Segmental Details
Residential Heating & Cooling revenues came in at $454 million, up 8% year over year. The upswing primarily stemmed from growth in the replacement business.
Commercial Heating & Cooling revenues came in at $206 million, up 5% year over year. This uptick was backed by growth in the regional and local replacement business.
However, Refrigeration sales dipped 2% year over year to $129 million.
Lennox International, Inc. Price, Consensus and EPS Surprise
Lennox International, Inc. Price, Consensus and EPS Surprise | Lennox International, Inc. Quote
Costs/Margins
Cost of goods sold during the quarter was $611.6 million, up 5% year over year. Adjusted gross profit margin was 26.6%, up 30 basis points (bps) year over year.
Selling, general and administrative expenses during the quarter totaled $155.2 million, up from the $152.4 million reported in the year-ago quarter. Adjusted operating profit margin was 6.7%, down 140 bps year over year.
Balance Sheet/Cash Flow
Exiting the first quarter, the company had cash and cash equivalents of $57.1 million, as against the $68.2 million recorded at the end of 2017. Long-term debt was $1,258.3 million, higher than the $970.5 million reported as of Dec 31, 2017.
In the first three months of 2018, Lennox International used $83.5 million cash in operating activities, as against the $107.6 million cash used in the year-ago period. Capital expenditures during the reported quarter were $23 million, lower than the $25 million incurred in first-quarter 2017.
Outlook
Lennox International intends to boost its near-term competency on the back of ongoing growth-based investments. The company also remains on track to increase shareholders’ returns in the near future.
This Zacks Rank #3 (Hold) company projects top-line growth for full-year 2018 at 4-8%, higher than the previous guidance of 3-7%. However, the adjusted earrings guidance has been reiterated at the $9.75-$10.35 per share range for the year.
Stocks to Consider
Some better-ranked stocks in the Zacks Construction sector are listed below:
Comfort Systems USA, Inc. (FIX - Free Report) sports a Zacks Rank of 1 (Strong Buy). The company’s earnings per share (EPS) are projected to grow 10% in the next three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.
Boise Cascade, L.L.C. (BCC - Free Report) also flaunts a Zacks Rank #1. The company’s EPS is estimated to be up 6.70%, over the next three to five years.
AAON, Inc. (AAON - Free Report) carries a Zacks Rank of 2 (Buy). The company’s EPS will likely be up 15% during the same time frame.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>