Lennox International (LII) Q2 Earnings and Revenues Beat Estimates

Company Performance - Lennox International (LII) reported quarterly earnings of $7.82 per share, exceeding the Zacks Consensus Estimate of $6.9 per share, and up from $6.83 per share a year ago [1] - The earnings surprise for this quarter was +13.33%, following a previous quarter where the company also surpassed expectations with earnings of $3.37 per share against an estimate of $3.25 per share, resulting in a surprise of +3.69% [2] - The company achieved revenues of $1.5 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.35% and increasing from $1.45 billion year-over-year [3] Market Outlook - Lennox shares have increased approximately 1.8% since the beginning of the year, while the S&P 500 has gained 7.3% [4] - The company's future stock performance will largely depend on management's commentary during the earnings call and the sustainability of the recent earnings numbers [4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $7.12, with expected revenues of $1.56 billion, and for the current fiscal year, the estimate is $22.89 on revenues of $5.46 billion [8] - The estimate revisions trend for Lennox was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7] Industry Context - The Building Products - Air Conditioner and Heating industry, to which Lennox belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, suggesting potential challenges ahead [9] - The performance of Lennox's stock may be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9]