Lennox stock surges 4.5% after beating Q1 earnings expectations
Lennox International Inc. (LII) saw its share price jump by 4.5% on April 29 after reporting stronger-than-expected first-quarter results. The company’s earnings per share (EPS) and revenue both beat analyst forecasts, offering a rare bright spot amid a year of underperformance compared to the broader market.
LII posted Q1 EPS of $3.35, surpassing Wall Street’s estimate of $3.16. Revenue also came in higher than expected, reaching $1.14 billion against a forecast of $1.07 billion. The positive surprise led to an immediate rise in the stock price, closing up 4.5% for the day.
For the full fiscal year, analysts project LII’s EPS to grow by 4.8%, reaching $24.28. The company itself has guided for an EPS range of $23.50 to $25. Despite this optimism, the stock has struggled over the past 12 months, falling 14.6% while the S&P 500 climbed nearly 26.6%. It has also lagged behind the State Street Industrial Select Sector SPDR ETF (XLI), which gained about 24.3% in the same period. Analyst opinions on LII remain mixed. JPMorgan Chase & Co.’s Patrick Baumann kept a 'Sell' rating on the stock, setting a price target of $522. In contrast, the highest target among analysts stands at $650, implying a potential upside of 27.8%. The average target of $564.67 suggests an 11% premium over LII’s current trading level. Out of 20 analysts covering the stock, seven have issued a 'Strong Buy' rating, leading to a consensus of 'Moderate Buy'.
LII’s latest earnings report provided a temporary boost to its share price, but the stock continues to trail both the S&P 500 and its sector peers over the past year. With analyst targets ranging from $522 to $650, investors will be watching whether the company’s projected EPS growth can translate into a sustained recovery.
