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Fly News Breaks for February 6, 2020
Feb 6, 2020 | 07:48 EDT
The last time Lennox International's EBIT was this low in Q1, the company did $515M in EBIT suggesting $2.05 in downside to the company's standing earnings per share guidance range of $11.30-11.90, JPMorgan analyst Stephen Tusa tells investors in a research note. Further, normal seasonality suggests earnings per share of less than $10, contends the analyst. Tusa takes the "middle of the road" and comes to an $11.10 earnings per share estimate for 2020. He believes that without a guidance reset, and with longer term headwinds on cycle and company specific market outgrowth potential, the shares are likely to see a continued "de-rating." The analyst maintains an Underweight rating on Lennox with a $200 price target.