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Free Research Report as Lennox Delivered Record Revenues; Adjusted Earnings Surged 30%

Stock Monitor: Gorman-Rupp Post Earnings Reporting

LONDON, UK / ACCESSWIRE / July 30, 2018 / If you want access to our free earnings report on Lennox International Inc. (NYSE: LII) (“Lennox”), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=LII. The Company reported its second quarter fiscal 2018 operating and financial results on July 23, 2018. The manufacturer of furnaces, air conditioners, and other products outperformed top- and bottom-line expectations. Additionally, the Company raised its earnings guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for The Gorman-Rupp Company (NYSE: GRC), which also belongs to the Industrial Goods sector as the Company Lennox Intl. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Lennox International most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the second quarter of the fiscal year 2018, Lennox generated record GAAP revenues of $1.18 billion, up 7% compared to $1.10 billion in Q2 2017. The Company's adjusted revenues were up 9% to a record $1.16 billion on a y-o-y basis in the reported quarter. Lennox's revenue numbers beat analysts' estimates of $1.13 billion.

On a GAAP basis, Lennox's gross profit was $362 million, up 6% on a y-o-y basis. The Company's gross margin was 30.8%, down 10 basis points (bps). On an adjusted basis, Lennox's gross profit was $357 million, up 7% on a y-o-y basis, while its adjusted gross margin was 30.8%, down 70 bps. The Company's gross profit on a GAAP and adjusted basis was positively impacted by higher volume, favorable price, sourcing, and engineering-led cost reductions, as well as a favorable foreign exchange.

For Q2 2018, Lennox's GAAP operating income was a record $195.1 million, up 11% from $175.4 million in Q2 2017.

On a GAAP basis, Lennox's income from continuing operations was $139.2 million, or $3.39 per share, in Q2 2018 compared to $116.4 million, or $2.71 per share, in Q2 2017. The Company's adjusted income from continuing operations was $150.5 million, or $3.67 per share, in the reported quarter compared to $121.0 million, or $2.83 per share, in the prior year's same quarter. Lennox's earnings beat Wall Street's estimates of $3.56 per share.

For Q2 2018, Lennox's adjusted earnings from continuing operations excluded net after-tax charges of $11.3 million; a $31.4 million asset write-down associated with Refrigeration divestitures; a net gain of $18.0 million from the sale of the Australia and Asia businesses and Sydney-area real estate; and a net gain of $2.1 million for various other items.

Segment Results

During Q2 2018, Lennox's Residential Heating & Cooling business segment's revenues rose 10% to a record $716 million. The segment's profit was a record $154 million, up 9%; while its margin remained flat at the record level of 21.5%. The segment's results were positively impacted by a higher volume; a higher price; sourcing and engineering-led cost reductions; lower selling, general, and administrative expenses (SG&A); and a favorable foreign exchange.

For Q2 2018, Lennox's Commercial Heating & Cooling business segment's revenues advanced 13% to a record $292 million. The segment's profit rose 18% to a record $53 million, while its margin expanded 70 bps to 18.0%. The segment's results were positively impacted by a higher volume; a higher price; sourcing and engineering-led cost reductions; and a favorable warranty.

Lennox's Refrigeration business segment's revenues were $150 million on an adjusted basis in Q2 2018, up 2%. The segment's profit was up 5% to $22 million, while its margin expanded 40 bps to 14.9%. The segment's results were positively impacted by a higher volume; a higher price; engineering-led cost reductions; sourcing benefits, including selling refrigerant allocations in Europe; and a favorable foreign exchange.

Cash Matters

During Q2 2018, Lennox's net cash from operations was $49 million compared to $59 million in Q2 2017. The Company's capital expenditure was $21 million in the reported quarter versus $19 million in the prior year's comparable quarter. For Q2 2018, Lennox free cash flow was $28 million compared to approximately $41 million in Q2 2017.

Lennox's total debt was $1.35 billion at the end of Q2 2018. The Company's total cash and cash equivalents were $39 million at the end of June 2018. During Q2 2018, Lennox paid $21 million in dividends and $200 million for stock repurchases.

Outlook for FY18

For FY18, Lennox updated its guidance for GAAP revenue growth from 4% - 8%, with a benefit of 1% from foreign exchange, to 4% - 6%; in order to reflect the timing of Refrigeration divestitures and neutral foreign exchange. The Company also raised its guidance for adjusted revenue growth from 4% - 8%, with a benefit of 1% from foreign exchange, to 6% - 8%, with a neutral foreign exchange.

Lennox raised its GAAP earnings per share from continuing operations guidance from $8.79 - $9.39 to $9.43 - $9.83, and also raised its adjusted earnings per share from continuing operations guidance from $9.75 - $10.35 to $9.95 - $10.35. Additionally, Lennox raised its stock repurchase guidance from $350 million to $450 million.

Stock Performance Snapshot

July 27, 2018 - At Friday's closing bell, Lennox International's stock slightly climbed 0.70%, ending the trading session at $211.12.

Volume traded for the day: 272.09 thousand shares.

Stock performance in the last month – up 8.92%; previous three-month period – up 6.50%; past twelve-month period – up 22.68%; and year-to-date – up 1.37%

After last Friday's close, Lennox International's market cap was at $8.47 billion.

Price to Earnings (P/E) ratio was at 24.80.

The stock has a dividend yield of 1.21%.

The stock is part of the Industrial Goods sector, categorized under the Diversified Machinery industry.

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