Lennox Revises 2016 Profit Outlook Higher, Provides 2017 Outlook

Lennox International Inc. revised up its adjusted earnings-per-share outlook for 2016 to $6.80 to $6.95 from $6.75 to $6.95, with the midpoint of the range now more in line with the FactSet consensus of $6.88. For 2017, the seller of heating, air conditioning and refrigeration products said it expects adjusted EPS of $7.55 to $8.15, surrounding the FactSet consensus of $7.72. Revenue is expected to increase 3% to 7% over 2016, while the FactSet revenue consensus of $3.79 billion implies growth of 4.5%. Lennox said it expects to buy back $250 million worth of its shares in 2017, after repurchasing $300 million worth of its shares in 2016. The stock, which was still inactive in premarket trade, has run up 26% year to date, while the S&P 500 has gained 11%.