Lincoln Electric Holdings
The 10-second takeaway
For the quarter ended March 31 (Q1), Lincoln Electric Holdings beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share improved significantly.
Margins improved across the board.
Lincoln Electric Holdings reported revenue of $727.1 million. The five analysts polled by S&P Capital IQ expected to see a top line of $699.3 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $599.2 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 $0.76. The five earnings estimates compiled by S&P Capital IQ predicted $0.68 per share. GAAP EPS of $0.76 for Q1 were 36% higher than the prior-year quarter's $0.56 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 29.6%, 270 basis points better than the prior-year quarter. Operating margin was 12.6%, 260 basis points better than the prior-year quarter. Net margin was 8.8%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $782.9 million. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $3.06 billion. The average EPS estimate is $3.06.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 368 members out of 375 rating the stock outperform, and seven members rating it underperform. Among 123 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 123 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 $53.50.
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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.