Lennox International Expects Sales Growth Despite Flat Volumes

Lennox International, the renowned heating, ventilation, and air conditioning supplier, is optimistic about sales growth this year, despite experiencing flat volumes. The company, based in Richardson, Tex., reported a fourth-quarter profit of $144.5 million, or $4.04 per share, a significant increase from $94.4 million, or $2.65 per share, in the same period the previous year.

After adjusting for one-time items like gains from divestitures, the company's adjusted earnings stood at $3.63 per share, surpassing the $3.46 per share expected by analysts surveyed by FactSet. Furthermore, Lennox International's revenue rose approximately 6% to reach $1.15 billion, exceeding analysts' expectations of $1.13 billion.

Core revenue, which excludes the company's European operations, observed a 7% increase, reaching $1.1 billion in the quarter. It is worth noting that Lennox International agreed to sell a substantial portion of its European operations last year.

Looking ahead to 2024, the company aims to achieve a 7% increase in core revenue, primarily driven by price hikes and the sale of higher-priced equipment. Sales volumes, however, are projected to remain relatively stagnant.

Lennox International has set its sights on adjusted earnings between $18.50 and $20 per share for 2024. Although this guidance falls slightly below analysts' expectations of $19.94 per share, the company remains confident in its ability to deliver strong financial results.