Will Lennox Remain Successful In Beating Its Earnings Estimates?

Lennox International, Inc. (NYSE:LII), a company known for providing home climate control devices and systems, will release its earnings report for the second quarter of 2014 on July 21. Expectations are quite high since the company reported positive earnings of 2.44 percent for the first quarter of the same year. Let’s have a look at Lennox’s situation and see whether it will beat the estimates or not.

Lennox (NYSE:LII)’s revenues and earnings are expected to jump up this quarter, for the company has embarked upon its construction business. Moreover, through the launch of innovative and thoughtful products, the company has remained successful in gaining a good portion of the market share.

Where the company is trying to increase its profits, it is also trying to cut back on the expenses. The company, in the first quarter of 2014, reduced almost 80 points in administrative and general expenses. Moreover, the company is trying to gain shareholder’s trust as it has increased the quarterly dividends to 30 cents per share from a previous dividend value of 24 cents per share.

In order to beat earnings expectations, a company needs to have a positive ESP (earnings surprise prediction) as well as a #1, #2 or #3 ranking from Zacks. If the same formula is applied to Lennox, the chances are really low that the company will be able to beat its earnings.

ESP stands for the difference between consensus estimate of Zacks and the most accurate estimate. For Lennox (NYSE:LII), the ESP is currently at 0 percent: meaning that the earnings will probably be in line with the shares. As for the Zacks rank, the company currently holds a #3 rank, and #3 rank is for ‘Hold’ whereas the adjacent ranks of #4 and #5 stand for ‘Sell’. The estimate of company’s revision momentum is currently running in a negative. Hence, it is very unlikely that Lennox (NYSE:LII) will be able to beat the earnings.

Coming to the stock prices of the company, the company in the last trading session, July 17, 2014, opened its shares at a price of $86.95 and closed at a price of $85.77, after hitting the highest figures of $87.16. The company has a market capitalization of 4.22 billion.

Talking about some other stocks that are likely to beat earnings this quarter, Curtiss-Wright Corp. (NYSE:CW) has an ESP of +1.28 percent with a #2 rank on Zacks. The company, in the last trading session, opened its stocks at $62.42 and closed at $60.80. The intraday range for the stocks was $60.60-$63.20.

Similarly, Ply Gem Holdings, Inc. (NYSE:PGEM) has an ESP of +35.29 percent and a #3 rank on Zacks. On July 17, the company started its stocks at $9.44 and closed at $9.40. The intraday range for the stocks was $9.31to $9.54.

Furthermore, United Rental, Inc. (NYSE:URI) has a positive ESP of +2.80 percent and a #3 rank on Zacks. On the last trade day, July 17, United Rental, Inc. (NYSE:URI) opened its shares at a price of $111.94 and closed at a price of $110.06, after hitting the highest figures of $114.95. The company has a market capitalization of 10.71 billion and a price to earnings ratio of 26.62.