$LII

Lennox International Inc. reports Q3 earnings on Wednesday, with analysts expecting $7.36 EPS on $1.57B revenue. The company faces residential HVAC market pressures and competitive pricing challenges. Wall Street maintains a neutral stance, with a mean price target of $442.14. Recent downgrades and price-target cuts reflect cautious sentiment. Commercial segment growth and 2027 outlook will be scrutinized.

Lennox International (LII) will report Q3 earnings on Wednesday. Last quarter, it missed revenue expectations with $1.55B (+3% YoY) but beat organic revenue estimates. Analysts expect 10.7% YoY revenue growth this quarter. Peers Apogee and Simpson reported Q3 revenue growth of 9.2% and 2.3%, respectively. LII's stock is down 1% over the past month, with an average price target of $442.14.

AAON (NYSE:CARR) beat analyst estimates but fell 9.9% to $85.47. Lennox (NYSE:LII) missed expectations, down 35.5% to $350.87. Advanced Drainage (NYSE:WMS) grew 20.6% but fell 15.3% to $126.77. Northwest Pipe (NASDAQ:NWPX) rose 19.7%, yet dropped 19.3% to $99.44. Market focus shifted from AI to geopolitics.

Goldman Sachs upgraded Trane Technologies (TT) to Buy, citing strong commercial HVAC demand. It downgraded Lennox (LII) and Carrier (CARR) to Neutral, citing weak residential demand. Goldman expects higher earnings for Trane and Johnson Controls, but lower earnings for Lennox and Carrier relative to consensus.

Lennox (LII) and Everyday Electric partner to integrate energy-saving features into Lennox smart thermostats, launching in 2027. Over 1 million existing thermostats and new ones will gain capabilities to automatically adjust temperatures for cost savings and utility rewards, while allowing users to maintain control. The collaboration aims to address rising energy demand and costs, benefiting both households and the grid.

Wall Street analysts issued research calls on several companies. Upgrades include Albemarle (ALB) to Outperform, Brinker International (EAT) to Buy, Lockheed Martin (LMT) to Buy, and Trane Technologies (TT) to Buy. Downgrades include Albertsons (ACI) to Underperform, Dell (DELL) to Equal Weight, Hewlett Packard Enterprise (HPE) to Equal Weight, Lennox (LII) to Neutral, and NetApp (NTAP) to Equal Weight. Initiations include Alcoa (AA) with Overweight, Garmin (GRMN) with Buy, and others.

Analysts updated ratings and price targets for several companies. Albemarle (ALB) was upgraded to buy with a $130 target by Mizuho. Dell (DELL) and Domino's (DPZ) were downgraded by Barclays and Gordon Haskett, respectively. Other notable changes include upgrades for Galaxy Digital (GLXY) and Trane (TT), and downgrades for Carrier (CARR), Lennox (LII), and more. Price targets were adjusted accordingly.

Goldman Sachs downgraded Lennox International (LII) to Neutral from Buy, lowering its price target to $390 from $547 due to weak demand in residential HVAC and competitive pressure. LII stock is near its 52-week low, down 40% from its high. The firm cited earnings risk for 2027 and a slower-than-expected recovery in the residential HVAC market. LII reported mixed Q2 2026 results, beating earnings estimates but missing on revenue. The company revised its full-year profit outlook downward.

Lennox Industries, a subsidiary of Lennox International (LII), has patented a machine-learning HVAC control device. The patent, granted in September, predicts building occupancy and adjusts energy usage. Lennox has a history of HVAC innovation and recently invested in technician training. The company won an award for its L40 Smart Thermostat in January. 105 other patents were issued in North Texas that week, including those from Texas Instruments (TXN) and Alcon (ALC).

Argus raised its target price for Lennox International (LII) to $353.00. The company manufactures HVAC and refrigeration products, with 75% of sales from replacement markets and 25% from new construction.