Lennox Q1 Profit Tops Street; Cuts FY14 GAAP EPS View - Quick Facts

(RTTNews) - Climate control products maker Lennox International Inc. (LII) reported a surge in its first-quarter GAAP net income to $19.9 million, or $0.40 per share, from $8.0 million, or $0.16 per share, last year. On a non-GAAP basis, adjusted earnings from continuing operations totaled $20.8 million, or $0.42 a share for the recent period. On average, 12 analysts polled by Thomson Reuters expected earnings per share of $0.41 for the quarter. Analysts' estimates typically exclude one-time items.

The firm clocked net sales of $695.4 million in the quarter, up 4%, compared with the prior-year quarter's $668.4 million, while 10 analysts estimated revenues of $692.30 million. Foreign exchange had a negative 2 point impact on revenue growth, whereas volume and price/mix were up from the year-ago quarter.

"First quarter performance was led by our Residential business, with revenue up 10% at constant currency and segment profit up 19%," said Chairman and Chief Executive, Todd Bluedorn. The company said its financial results in prior periods have been revised to reflect sold businesses in discontinued operations.

For fiscal 2014, Lennox still expects adjusted earnings from continuing operations in the range of $4.20 - $4.60 per share and revenue growth of 3 percent - 7 percent at constant currency, while now expecting 1 point of negative impact from foreign exchange on a full-year basis for revenue growth of 2-6% at actual currency for 2014. Also, the company is lowering its guidance for GAAP earnings per share from continuing operations from $4.20 - $4.60 to a range of $4.18 - $4.58, incorporating charges in the first quarter. Twelve analysts project annual earnings of $4.54 per share.

The firm also reiterates plans for $150 million of stock repurchases in 2014.