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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Lincoln Electric (Nasdaq: LECO ) jumped as much as 18% today after announcing third quarter earnings.
So what: Revenue fell 0.6%, to $697.6 million in the quarter, due to a weak macroeconomic environment. The result was below the $719.7 million in revenue that analysts expected.
But the really impressive numbers were on the bottom line, where adjusted earnings per share jumped from $0.66 a year ago, to $0.80 this quarter, ahead of estimates by $0.06.
Now what: The improved margins give confidence that, if economic conditions improve, the company will be able to leverage revenue growth to the bottom line. Shares are currently trading at 15 times trailing earnings, which is a decent price given the company's consistent results. I'd be a buyer on a pullback, which shares have already begun to do as trading continues throughout the day.
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