LII Earnings Prediction
The chart below shows how LII performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LII sees a -0.93% change in stock price 10 days leading up to the earnings, and a +4.04% change 10 days following the report. On the earnings day itself, the stock moves by +0.68%. This data can give you a slight idea of what to expect for the next quarter's release.
LII Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.34B
16.47%
-10.22%
Gross Margin
33.85%
10.19%
3.83%
Operating Margin
18.45%
19.19%
-9.25%
Net Margin
14.70%
17.51%
-7.84%
EPS
5.52
37.66%
-17.37%
No Data Available
LII Earnings Analysis
Lennox International Inc Corporation (LII.N) Earnings Conference Call
Positive
Record Revenue Achievement: Lennox achieved record revenue exceeding $5 billion for the first time, alongside an adjusted segment profit surpassing $1 billion, highlighting significant financial growth.
Record Adjusted EPS Growth: Adjusted earnings per share reached a record $5.60 for Q4 and $22.58 for the full year, reflecting a 54% increase in adjusted EPS year-over-year.
Core Revenue Growth: Core revenue grew by 22% in Q4 and 13% for the full year, demonstrating strong demand and effective market strategies.
Home Comfort Solutions Growth: The Home Comfort Solutions segment reported a remarkable 25% revenue growth and 67% segment profit growth in Q4, driven by a 21% increase in sales volume.
Record Operating Cash Flow: Operating cash flow reached a record $332 million in Q4 and $946 million for the full year, showcasing improved cash conversion and financial health.
Negative
Earnings Per Share Guidance: Adjusted earnings per share guidance for 2025 is projected to fall within the range of $22 to $23.50, indicating a potential decline from the previous year's performance.
2025 Revenue Growth Outlook: The anticipated revenue growth for 2025 is only about 2%, significantly lower than the previous year's growth, primarily due to the impact of the 2024 pre-buy.
Profit Margin Decline: The Building Climate Solutions segment experienced a profit margin decline due to $20,000,000 in higher product costs related to new factory ramp-up activities and inefficiencies at existing facilities.
Inflation Impact on Profit Margins: Inflation is expected to increase costs by approximately 3%, which could further pressure profit margins amid ongoing economic uncertainties.
Free Cash Flow Projection: Free cash flow guidance for 2025 is projected to fall within the range of $650,000,000 to $800,000, which is lower than previous expectations and reflects a conversion rate of about 85%, below the traditional target of 90%.
LII FAQs
How does LII typically perform around its earnings report dates?
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LII Earning Call Sentiment
Earnings call transcript: Lennox Q4 2024 beats estimates, stock dips
LII.N
-3.33%Positive
The earnings call summary shows strong financial performance with substantial revenue and EPS growth, improved margins, and a robust cash flow. Positive guidance for 2024 EPS and free cash flow further supports a positive sentiment. Despite some uncertainties discussed in the Q&A, like pre-buy impacts and inflation, the company's strategic positioning and improved financial leverage bode well. The raised guidance and strong financial metrics outweigh potential concerns, indicating a likely positive stock price movement.
