Published Mon, Jul 22 2019 10:48 AM EDT Updated Mon, Jul 22 2019 12:57 PM EDT
- Lennox International lowers its 2019 guidance, partially based on colder temperatures.
- “Significantly cooler temperatures and higher precipitation across the United States adversely impacted the HVAC market in the second quarter,” says Chairman and CEO Todd Bluedorn.
- The guidance cut comes after a heat wave swept through the United States this weekend. June was the hottest since the National Oceanic and Atmospheric Administration began recording temperatures in the 1800s and July is on track to break its own record.
Lennox International Air Conditioner systems
Source: Lennox International.
Despite a blistering heat wave across the East Coast this weekend, air-conditioner maker Lennox International pointed to colder weather as a key reason for cutting guidance and underperforming in the second quarter.
The Texas-based company brought in second-quarter earnings per share of $3.74 — about 9% below analysts’ consensus FactSet estimate of $4.12. Sales came in about 4% below Wall Street consensus. The company also said adjusted revenue growth for 2019 would be just 2% to 5% and adjusted EPS from continuing operations would be $11.30 to $11.90 this year. Previous guidance was for earnings per share of at least $12.
“Significantly cooler temperatures and higher precipitation across the United States adversely impacted the HVAC market in the second quarter, and especially in key Central regions where cooling degree days were down over 30% and precipitation was up over 60%,” Lennox International Chairman and CEO Todd Bluedorn said in a press release Monday.
Shares of Lennox fell 3.3% Monday.
While the company highlighted colder second-quarter temperatures, weather in more recent months is hitting new records. June was the hottest since the National Oceanic and Atmospheric Administration began recording temperatures in the 1800s. July is also on track to break a record after the National Weather Service issued a national advisory due to dangerous heat and humidity over the weekend.
With @NASAGISS temperature data for the first six months of the year in, what is the prospect for 2019?— Gavin Schmidt (@ClimateOfGavin) July 16, 2019
90% chance of being warmer than last year
~5% chance of new record
99.9% change of being a top 5 year and > 1ºC above the late 19th C. pic.twitter.com/3g4NH8ItNe