Lincoln Electric (NASDAQ:LECO) Releases Quarterly Earnings Results, Beats Expectations By $0.12 EPS

Lincoln Electric (NASDAQ:LECO) announced its earnings results on Thursday. The industrial products company reported $2.93 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.81 by $0.12, Briefing.com reports. Lincoln Electric had a net margin of 12.38% and a return on equity of 39.33%. The business had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.17 billion. During the same quarter in the previous year, the firm posted $2.60 earnings per share. Lincoln Electric’s revenue was up 12.0% compared to the same quarter last year.

Here are the key takeaways from Lincoln Electric’s conference call:

• Raised full-year sales outlook: Lincoln Electric now expects low-double-digit net sales growth, with organic growth in the high-single-digit to low-double-digit range, supported by stronger Americas demand, incoming orders, and a record backlog.
• Second-quarter sales rose 12% to $1.22 billion, while adjusted EPS increased 13% to $2.93. Adjusted operating margin improved 50 basis points to 18.4%, reflecting volume leverage and an improving price-cost position.
• Americas Welding showed broad-based momentum, including 7% volume growth and high-teens equipment sales growth. Management also cited accelerating automation demand, strong quoting activity, and customer investment in productivity and capacity.
• International Welding remains pressured by weak European industrial activity and an expected $6 million-$7 million quarterly headwind from the resumption of Middle East conflict; full-year segment margins are now expected at 10%-11%.
• Price-cost performance ended the quarter with a 10-basis-point headwind, but management expects pricing actions to deliver neutrality in the second half. Persistent inflation, commodity volatility, evolving trade policies, and a projected $10 million full-year LIFO headwind remain risks.

Lincoln Electric Price Performance

NASDAQ LECO traded up $12.38 during trading hours on Friday, reaching $262.61. 286,538 shares of the company’s stock were exchanged, compared to its average volume of 369,807. The stock has a market cap of $14.39 billion, a PE ratio of 27.14, a price-to-earnings-growth ratio of 1.58 and a beta of 1.20. Lincoln Electric has a one year low of $216.22 and a one year high of $310.00. The firm has a fifty day moving average of $259.87 and a 200-day moving average of $263.70. The company has a current ratio of 1.83, a quick ratio of 1.15 and a debt-to-equity ratio of 0.76.

Lincoln Electric Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th will be issued a $0.79 dividend. This represents a $3.16 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Wednesday, September 30th. Lincoln Electric’s payout ratio is presently 32.61%.

Wall Street Analysts Forecast Growth

LECO has been the topic of several research reports. DA Davidson initiated coverage on shares of Lincoln Electric in a report on Tuesday, June 16th. They set a “buy” rating and a $320.00 price objective on the stock. Weiss Ratings upgraded Lincoln Electric from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, July 10th. Barclays upped their price target on Lincoln Electric from $280.00 to $300.00 and gave the company an “overweight” rating in a report on Tuesday, May 5th. Wall Street Zen downgraded Lincoln Electric from a “buy” rating to a “hold” rating in a research report on Monday, July 20th. Finally, Morgan Stanley upped their target price on Lincoln Electric from $250.00 to $253.00 and gave the company an “underweight” rating in a research note on Friday, July 17th. Five analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Lincoln Electric presently has a consensus rating of “Hold” and a consensus target price of $299.38.

Insider Transactions at Lincoln Electric

In other news, EVP Michael J. Whitehead sold 845 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $274.81, for a total transaction of $232,214.45. Following the sale, the executive vice president owned 9,319 shares in the company, valued at approximately $2,560,954.39. This represents a 8.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 1.68% of the company’s stock.

Institutional Investors Weigh In On Lincoln Electric

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Compound Planning Inc. grew its stake in shares of Lincoln Electric by 27.9% during the fourth quarter. Compound Planning Inc. now owns 1,882 shares of the industrial products company’s stock valued at $451,000 after purchasing an additional 410 shares during the last quarter. Corient Private Wealth LLC lifted its holdings in Lincoln Electric by 7,838.2% during the 4th quarter. Corient Private Wealth LLC now owns 186,944 shares of the industrial products company’s stock worth $44,799,000 after buying an additional 184,589 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its holdings in Lincoln Electric by 64.8% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 14,901 shares of the industrial products company’s stock worth $3,571,000 after buying an additional 5,861 shares in the last quarter. Vident Advisory LLC boosted its position in Lincoln Electric by 121.3% in the 4th quarter. Vident Advisory LLC now owns 2,392 shares of the industrial products company’s stock valued at $573,000 after buying an additional 1,311 shares during the last quarter. Finally, EP Wealth Advisors LLC bought a new position in Lincoln Electric in the 4th quarter valued at $235,000. Institutional investors and hedge funds own 79.61% of the company’s stock.

Lincoln Electric Company Profile

Lincoln Electric Holdings, Inc (NASDAQ: LECO) is a global manufacturer and distributor of welding products, robotic welding systems, plasma and oxyfuel cutting equipment, and surface treatment systems. The company’s portfolio encompasses welding consumables such as electrodes and wires, as well as power sources, torches, and automated welding cells. Lincoln Electric also offers software solutions and training services designed to optimize productivity and quality in fabrication and manufacturing operations.

Founded in 1895 by John C.