Lennox Slashes Guidance, Stock Plunges 20% on Weak Housing Demand
LII is trading near its 52-week low of $431.41 (0.9% above the low) on elevated volume (2.2× avg).
Summary
Lennox cut its full-year EPS guidance to $23-$24 from $23.50-$25, citing a 7% drop in residential revenue and a 12% volume decline as slow home construction and weak consumer confidence dent demand. The stock fell 20% to $433.30, its worst day since 2001. This reverses the earlier guidance raise reported this morning, which had sent shares higher. Q2 revenue of $1.55B missed estimates, though adjusted EPS of $7.72 beat by $0.05. The commercial segment grew 24%, but residential softness dominates. CEO Maskara called the demand headwinds temporary, pointing to pent-up replacement needs, but near-term visibility is poor. With the stock near its 52-week low, the guidance cut and volume declines signal deeper cyclical pressure than the market expected.
At the time of this announcement, LII was trading at $435.10 on NYSE in the Manufacturing sector, with a market capitalization of approximately $15.1B. The 52-week trading range was $431.41 to $656.37. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.