Lennox International Inc. shares fell to a 52-week low of $394.48 on Tuesday, extending a 33% decline from the 52-week high of $590.99 amid weakening residential demand and a downward revision to full-year profit guidance.
The Dallas-based climate and heating equipment manufacturer reported adjusted earnings per share of $7.72 for the second quarter, exceeding Wall Street’s forecast of $7.61. Revenue totaled $1.5 billion, a 3% year-over-year increase but below the expected $1.56 billion as residential demand softened. The company’s market capitalization stands at $13.79 billion.
Following the results, Lennox cut its full-year profit outlook, signaling potential margin pressures in the second half of the year. Analyst Ryan Merkel of William Blair maintained an Outperform rating on the stock, noting that the guidance reduction reflects weaker near-term demand despite the company’s operational performance.
InvestingPro’s AI-driven analysis, which evaluates Lennox monthly using more than 100 financial metrics, has previously flagged Siemens Energy (+231.5%) and Sandisk (+189%) as high-potential picks. The firm also noted that Lennox’s stock appears undervalued at current levels, with the Relative Strength Index indicating oversold conditions.
The decline in Lennox’s shares underscores broader challenges in the residential HVAC sector, where demand has softened amid economic uncertainty and higher borrowing costs.
