The company now expects annual earnings per share to land between $23 and $24, a reduction from its previous forecast of $23.50 to $25. This adjustment follows a second-quarter report where residential revenue dipped 7% due to lower sales volumes and margin compression. While total revenue climbed 3% to $1.55 billion, the figure arrived just shy of the $1.56 billion anticipated by FactSet analysts.
In section Market Quotes
Lennox Trims Profit Forecast Amid Residential Cooling
An 8% premarket slide hit Lennox shares Wednesday as the HVAC manufacturer lowered its annual earnings guidance. Stagnant housing demand and elevated building costs have stalled residential sales, forcing the company to pivot its profit outlook despite a robust performance in its commercial division.
Chief Executive Alok Maskara pointed to persistent softness in the residential end market as the primary drag on results. High construction costs continue to deter new home builds, creating a persistent headwind for the manufacturer. Despite these residential struggles, the firm’s commercial segment provided a necessary buffer, recording a 24% surge in revenue. Lennox has opted to maintain its existing full-year sales growth guidance, signaling confidence that the commercial sector can offset the ongoing residential slump.
Comments (0)
No comments yet. Be the first!