Earnings Preview: Anticipating Lennox International’s Upcoming Report

Lennox International Inc.: Company Overview

Lennox International Inc. (LII), with a market capitalization of $17.7 billion, is a leading global supplier of climate control and refrigeration solutions. Based in Richardson, Texas, the company specializes in designing, producing, and distributing heating, ventilation, air conditioning, and refrigeration (HVACR) systems. Lennox places a strong emphasis on energy efficiency, sustainability, and innovative climate technologies, serving customers in residential, commercial, and industrial sectors.

Upcoming Earnings and Analyst Expectations

Lennox is set to announce its financial results for the fourth quarter of fiscal 2025. Analysts are forecasting earnings of $4.81 per share, which represents a 14.1% decrease compared to $5.60 per share in the same quarter last year. Despite this anticipated decline, the company has consistently exceeded Wall Street’s earnings estimates for the past four quarters.

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Future Earnings Outlook

Looking ahead to fiscal 2025, analysts project that Lennox will achieve earnings of $22.99 per share, reflecting a 1.8% increase from $22.58 in fiscal 2024. For fiscal 2026, earnings per share are expected to climb by 8.2% year-over-year, reaching $24.87.

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Stock Performance Comparison

Over the past year, Lennox shares have declined by 17.4%, lagging behind the Industrial Select Sector SPDR Fund (XLI), which gained 20.6%, and the S&P 500 Index ($SPX), which rose 17% during the same period.

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Product Launch and Innovation

On January 8, Lennox shares advanced 2.3% following the introduction of the Dave Lennox Signature® SLP99VK Gas Furnace. This high-efficiency heating system features a built-in Refrigerant Detection System (RDS), simplifying installation and reducing costs by removing the need for a separate kit. The furnace achieves up to 99% efficiency and is compatible with dual-fuel systems, allowing it to work alongside electric heat pumps for optimal energy use in varying climates.

Analyst Ratings and Price Target

Wall Street maintains a generally positive outlook on Lennox, assigning it a "Moderate Buy" consensus rating. Of the 19 analysts covering the stock, six rate it as a "Strong Buy," eleven recommend holding, one suggests a "Moderate Sell," and one rates it as a "Strong Sell." The average price target stands at $566.47, indicating a potential upside of 9.6% from current levels.