Lincoln Electric Holdings Earnings: Here’s Why Investors are Ambivalent Now

Lincoln Electric Holdings Inc. (NASDAQ:LECO) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Lincoln Electric Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.35% to $0.91 in the quarter versus EPS of $0.81 in the year-earlier quarter.

Revenue: Decreased 2.24% to $727.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lincoln Electric Holdings Inc. reported adjusted EPS income of $0.91 per share. By that measure, the company beat the mean analyst estimate of $0.88. It missed the average revenue estimate of $759.81 million.

Quoting Management: “We are pleased by our ongoing profitability improvement which reflects solid execution of our operational and commercial initiatives globally,” said Christopher L. Mapes, President and Chief Executive Officer. “While we maintain a cautious outlook for the balance of the year on mixed end sector performance, we expect to continue to deliver solid margin and earnings performance from the benefits of our initiatives, new product introductions and the careful management of expenses. Our efforts position us well to realize improved earnings, cash flow and shareholder returns as we work to execute our ’2020 Vision’ strategy and expand our global reach.”

Key Stats (on next page)…

Revenue increased 1.23% from $718.57 million in the previous quarter. EPS decreased 1.09% from $0.92 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.84 to a profit $0.85. For the current year, the average estimate has moved up from a profit of $3.48 to a profit of $3.49 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]