DALLAS – Lennox International Inc. (NYSE: NYSE:) reported a strong first quarter with earnings surpassing analyst expectations and subsequently raised its full-year profit guidance. The stock responded positively to the news, rising 1.75%.
The company, a leader in climate-control solutions, announced adjusted earnings per share (EPS) of $3.47 for the quarter, $0.30 higher than the analyst estimate of $3.17. Revenue matched the consensus estimate at $1.05 billion, maintaining the same level as the previous year, but core revenue saw a 6% increase.
Chief Executive Officer Alok Maskara credited the company’s record quarter to its transformation plan, which has been instrumental despite the ongoing residential destocking. “We remain cautiously optimistic regardless of end-market uncertainties,” said Maskara. The company’s Home Comfort Solutions segment experienced a slight revenue decline of 1%, attributed to destocking in the distribution channel. However, the Building Climate Solutions segment reported a robust 21% revenue growth, including a 6% increase from acquisitions.
Lennox’s adjusted segment profit rose 17% to $167 million, and the adjusted segment margin increased by 157 basis points to 15.9%. The profit growth was primarily driven by $40 million of price/mix benefits, $8 million in organic and inorganic sales volume, and $2 million in product costs.
Looking ahead, Lennox raised its full-year 2024 EPS guidance to a range of $19.00-$20.00, up from the previous range of $18.50-$20.00, though this updated guidance falls below the analyst consensus of $19.71. The company reaffirmed its revenue guidance at approximately 7%, with a 2% benefit from the AES (NYSE:) acquisition.
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