Lennox International Q3 Results Top Estimates; Narrows 2015 Adj. EPS View

(RTTNews) - Lennox International Inc. (LII) reported that its net income for the third quarter of 2015 increased to $80.3 million from $67.4 million in the same quarter last year.

On a GAAP basis, income from continuing operations for the third quarter was $80.3 million, or $1.76 per share, compared to $67.5 million, or $1.38 per share, in the prior-year quarter.

Adjusted income from continuing operations in the third quarter was $83.2 million, or $1.82 per share, compared to $70.3 million, or $1.44 per share, in the prior-year quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $1.79 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted earnings from continuing operations for the third quarter of 2015 excludes $2.9 million in after-tax charges: $0.8 million for special legal contingency charges, $0.7 million related to contractor tax payments in a non-U.S. subsidiary, $0.5 million for the net change in unrealized losses on unsettled future contracts, and $0.9 million, net, for other items.

Revenue for the third quarter was $955 million, up 6% from the prior-year quarter including the negative impact from foreign exchange. At constant currency, revenue was up 11%. Wall Street expected revenues of $937.62 million for the quarter.

For 2015, the company narrowed guidance for revenue and adjusted earnings per share from continuing operations.

The company narrowed 2015 adjusted earnings per share from continuing operations guidance range to $5.25-$5.40 from the prior estimate of$5.25-$5.50.

It Narrowed 2015 revenue growth guidance at constant currency to 5-7% from the prior estimate of 4-7% growth in revenue.

The company still expects a negative 3 point impact on revenue from foreign exchange on a full-year basis, equating to revenue growth guidance of 2-4% at actual currency versus the prior guidance range of 1-4%.

The firm updated its 2015 GAAP earnings per share from continuing operations guidance to $5.08-$5.23 from the prior estimate of $5.14-$5.39.

Wall Street currently is looking for fiscal year 2015 earnings of $5.35 per share on annual revenues of $3.46 billion.