Lennox Int'l Profit Tops Street - Update

(RTTNews) - Climate control products maker Lennox International Inc. (LII), Wednesday reported a better-than-estimated increase in fourth-quarter profit, on growth at residential and commercial segments as well as improved margins, partly offset by a slump at refrigeration business. Looking ahead, the company reaffirmed its guidance for 2014.

CEO Todd Bluedorn said prospects appear bright due to the company's strong product portfolio and a growing distribution network. He also said Lennox will maintain a competitive dividend and plans to repurchase $150 million of its stock in 2014.

The Richardson, Texas-based company posted quarterly net income of $35 million or $0.70 per share, compared with $22 million or $0.43 per share last year.

Excluding items, adjusted income for the quarter were $38 million or $0.77 per share, compared with $29 million or $0.56 per share in the prior year.

On average, 11 analysts polled by Thomson Reuters expected earnings of $0.74 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales in the fourth quarter increased 9 percent to $750 million from $685 million in the prior year. Nine analysts had a consensus revenue estimate of $727.5 million for the quarter.

Sales at residential grew 18 percent year-over-year and commercial sales were up 13 percent. But refrigeration segment sales slid 7 percent.

Profit margin for the quarter improved 200 basis points from last year to 8.2 percent.

For fiscal year 2014, Lennox still expect earnings from continuing operations in the range of $4.20 to $4.60 per share and revenue growth of 3 percent to 7 percent. Analysts currently estimate earnings of $4.48 per share on revenue growth of 5.6 percent for the year.

Lennox shares are trading at $85.02, up $0.60 or 0.71%, on the NYSE.