Lennox International (LII) Beats Q3 Earnings Estimates

Core Insights - Lennox International (LII) reported quarterly earnings of $6.98 per share, exceeding the Zacks Consensus Estimate of $6.69 per share, and showing an increase from $6.68 per share a year ago [1][2] - The company posted revenues of $1.43 billion for the quarter ended September 2025, which was below the Zacks Consensus Estimate by 2.66% and a decrease from $1.5 billion year-over-year [3] - The stock has underperformed the market, losing approximately 9.9% since the beginning of the year, while the S&P 500 has gained 14.5% [4] Earnings Performance - The earnings surprise for the recent quarter was +4.33%, and the company has surpassed consensus EPS estimates in all four of the last quarters [2] - The current consensus EPS estimate for the upcoming quarter is $5.34, with expected revenues of $1.32 billion, and for the current fiscal year, the estimate is $23.03 on revenues of $5.34 billion [8] Industry Context - Lennox operates within the Zacks Building Products - Air Conditioner and Heating industry, which is currently ranked in the bottom 20% of over 250 Zacks industries [9] - The performance of Lennox's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9] Future Outlook - The estimate revisions trend for Lennox was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] - The upcoming earnings report for Comfort Systems (FIX), a competitor in the same industry, is anticipated to show a year-over-year earnings increase of +51.6% [10]