Lennox Earnings: Guidance Raised Again After Another Strong Quarter; Completes Bolt-On Acquisition

Lennox's third-quarter performance handily exceeded our expectations as both its residential and commercial segments delivered robust revenue growth and profit margin expansion. Core revenue (that is, excluding European operations, which will soon be divested) increased 10% year over year as higher prices and a favorable mix shift to more energy efficient and premium products more than offset lower volumes. And segment-adjusted profit margin expanded 330 basis points year over year to 19.3%, primarily due to favorable price and product mix.