Lincoln Electric Holdings
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Lincoln Electric Holdings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Margins expanded across the board.
Lincoln Electric Holdings booked revenue of $694.5 million. The three analysts polled by S&P Capital IQ predicted a top line of $697.2 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $564.3 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 $0.68. The four earnings estimates compiled by S&P Capital IQ averaged $0.64 per share. GAAP EPS of $0.68 for Q4 were 39% higher than the prior-year quarter's $0.49 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 28.0%, 240 basis points better than the prior-year quarter. Operating margin was 11.9%, 280 basis points better than the prior-year quarter. Net margin was 8.3%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $669.0 million. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $3.06 billion. The average EPS estimate is $2.93.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 363 members rating the stock outperform, and seven members rating it underperform. Among 146 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 146 give Lincoln Electric Holdings a green thumbs-up.
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 $47.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.