Lincoln Electric Holdings Earnings: Here’s Why Investors are Buying Shares 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. Shares are up 6.24%.

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Lincoln Electric Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 21.05% to $0.92 in the quarter versus EPS of $0.76 in the year-earlier quarter.

Revenue: Decreased 1.17% to $718.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lincoln Electric Holdings Inc. reported adjusted EPS income of $0.92 per share. By that measure, the company beat the mean analyst estimate of $0.79. It missed the average revenue estimate of $736.63 million.

Quoting Management: Christopher L. Mapes, President and Chief Executive Officer said, “Despite the uncertain economic environment, we are committed to continuing to enhance shareholder returns as we work towards the goals set in our ’2020 Vision’. Our solid balance sheet provides the flexibility required to execute our long-term strategic objectives and allows us to remain focused on global growth strategies, including attractive acquisitions to shape our product portfolio and global reach.”

Key Stats (on next page)…

Revenue increased 4.96% from $684.65 million in the previous quarter. EPS increased 16.46% from $0.79 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.88 to a profit $0.86. For the current year, the average estimate has moved down from a profit of $3.35 to a profit of $3.33 over the last ninety days.

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