Lincoln Electric Holdings
The 10-second takeaway
For the quarter ended June 30 (Q2), Lincoln Electric Holdings missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Margins increased across the board.
Lincoln Electric Holdings reported revenue of $744.0 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $800.1 million on the same basis. GAAP reported sales were 6.4% higher than the prior-year quarter's $699.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.81. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.86 per share. GAAP EPS of $0.79 for Q2 were 16% higher than the prior-year quarter's $0.68 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.2%, 220 basis points better than the prior-year quarter. Operating margin was 13.1%, 170 basis points better than the prior-year quarter. Net margin was 8.9%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $776.6 million. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $3.10 billion. The average EPS estimate is $3.23.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 361 members out of 370 rating the stock outperform, and nine members rating it underperform. Among 114 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give Lincoln Electric Holdings a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lincoln Electric Holdings is outperform, with an average price target of $56.42.
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