DALLAS (AP) — Lennox International Inc.'s shares fell Tuesday after the company reported a dip in its second-quarter net income and disappointing revenue.
The Dallas-based company makes products for heating, ventilation, air conditioning and refrigeration for customers around the world.
Lennox reported net income of $44.7 million, or 87 cents per share, for the quarter that ended June 30, down from $45 million, or 83 cents per share, a year ago.
It earned 96 cents per share on an adjusted basis from continuing operations, which excludes the sale of its Hearth business in April. That matched the average expectation of analysts surveyed by FactSet.
Revenue increased 2 percent to $933.8 million from $914.1 million on stronger sales volume and higher prices. But analysts expected revenue of $955.5 million.
While revenue for its heating and cooling businesses grew, its refrigeration and service experts units reported a drop in revenue. The refrigeration business struggled with soft demand in Europe and Australia and the service unit was hurt by lower sales volume and unfavorable exchange rates.
Its shares tumbled $3.35, or 7.2 percent, to $43.01 in midday trading. Its shares have climbed more than 82 percent since October.
Lennox said it remains cautious about the global macroeconomic environment for the second half of the year. However, it raised its outlook for the full year and plans to buy back at least $50 million shares in the second half of the year.
The company now expects to earn $2.35 per share to $2.65 per share on an adjusted basis from continuing operations, up from prior guidance of $2.20 to $2.60.
It also narrowed its revenue guidance, saying it expects growth of 3 to 6 percent year-over-year versus 2 to 6 percent. This calculates to revenue of roughly $3.4 billion to $3.5 billion.
Analysts are anticipating the company will earn $2.53 per share for the year on revenue of $3.36 billion.