-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Lennox posted Q1 adjusted EPS of $3.35, down 0.6% but beating consensus by $0.17, as sales rose 6% to $1.14B ($64M above estimates), underpinned by completed acquisitions. Home Comfort Solutions saw sequential improvement with revenue falling 10% vs. 21% in the prior year quarter, though segment margins fell 390bps to 13.3% on inflationary pressures. Building Climate Solutions saw strong organic growth of 26% with margins expanding 300bps to ~19.7% from new national account wins and emergency replacement strength. Management maintained full-year EPS guidance of $23.50-$25.00 while raising revenue growth guidance to ~8% vs. the previous 6.5% midpoint growth. Operating cash flow improved significantly to $16M from a negative cash flow of $36M in the prior year period, supported by ongoing inventory normalization. We believe the company's ability to maintain free cash flow guidance of $750M-$850M reflects confidence in generating strong cash returns despite near-term operational challenges in residential markets.