Lennox Q1 Profit Soars, Adj. EPS Tops Estimates; Lifts FY16 Earnings View

(RTTNews) - Lennox International Inc. (LII), a heating, air conditioning, and refrigeration company, reported Monday that its first-quarter net income was $24.9 million or $0.56 per share, compared to $14 million, or $0.31 per share, in the prior-year quarter.

Adjusted income was $27.0 million or $0.60 per share, compared to $16.8 million or $0.37 per share in the prior-year quarter.

On average, 18 analysts polled by Thomson Reuters expected earnings of $0.55 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the first quarter was $715.2 million, 4% higher than last year's $685.8 million, including the negative impact from foreign exchange. At constant currency, revenue was up 6%. Volume was up, and price/mix was flat on a revenue basis from the prior-year quarter.

Analysts were looking for revenues of $723.61 million for the quarter.

Looking ahead, for fiscal 2016, the company lifted forecast for earnings per share from continuing operations to $6.26-$6.76 from $6.10-$6.60, and adjusted earnings per share to $6.30-$6.80 from $6.10-$6.60. Analysts expect earnings of $6.34 per share for the year.

The company said its underlying business expectations for the full year remain consistent with previous adjusted EPS from continuing operations guidance.

The company reiterated 2016 revenue growth guidance of 4-8% at constant currency. The company still expects a negative 1 point impact on revenue from foreign exchange on a full-year basis, equating to revenue growth guidance of 3-7% at actual currency.

Chairman and CEO Todd Bluedorn said, "Looking ahead for the company overall, it is early in the year and the largest seasonal quarters are still in front of us, but 2016 is off to a strong start, and we continue to expect another record year."