Lennox Int'l Guides FY23 In Line With Estimates

(RTTNews) - Ahead of its 2022 Investor Day in New York City later on Wednesday, Lennox International Inc. (LII) initiated its 2023 financial guidance and long-term financial targets for 2026.

For fiscal 2023, the company now projects earnings and adjusted in a range of $14.25 to $15.25 per share on core revenue growth of 0 to 4 percent, excluding the impact of the planned divestiture of the European operations.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $14.79 per share on a revenue growth of 1.0 percent to $4.78 billion for the year. Analysts' estimates typically exclude special items.

"For 2023, Lennox expects residential unit softness to be overcome by the cumulative impact of price, mix and productivity to deliver growth in revenue, margin and EPS," said CEO Alok Maskara.

For long-term financial targets for 2026, the company projects core revenues in the range of $5.0 billion to $5.5 billion, EBIT return on sales margin of 18 to 20 percent and free cash flow 90 to 100 percent of net income on average for 2023-2026.

The company noted that the forecast margin strength for 2026 is the result of manufacturing productivity initiatives, engineering and sourcing-led cost-reduction efforts to further reduce product costs, and leveraging SG&A while continuing to offset inflation with price.

The overall outlook reflects the benefit of the company's sharp focus on the North American end-market." It added.

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