UPDATE: Lennox Shares Surge On Better-Than-Expected Q3 Earnings

Lennox International LII reported better-than-expected earnings for the third quarter. The Richardson, Texas-based company posted a quarterly profit of $67.4 million, or $1.38 per share, versus a year-ago profit of $64.3 million, or $1.27 per share. Its adjusted earnings climbed 11% to $1.44 per share from $1.30 per share. Its revenue rose 4% to $898.4 million in the period. However, analysts were expecting earnings of $1.42 per share on revenue of $910.15 million. Revenue in the Residential Heating & Cooling business segment gained 7% to $463 million, while revenue in the Commercial Heating & Cooling business segment rose 1% to $242 million. Revenue in the Refrigeration business segment came in flat at $194 million in the quarter. Net cash from operations fell to $97 million from $153 million. Its gross profit widened 4% to $247 million. At the end of the quarter, total cash and cash equivalents were $48 million. The company also announced a new $450 million accelerated share repurchase program. Chairman and CEO Todd Bluedorn said, “As expected, business was negatively impacted by the July repeal of the carbon tax in Australia. North America refrigeration revenue was flat in the third quarter. We continue to expect improvement in that business on the ramp up of new national account business in the fourth quarter and into 2015.” Lennox projects full-year earnings of $4.30 to $4.50 per share. Lennox shares jumped 9.46% to $83.57 at 10:30 a.m. ET.