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Lincoln Electric Holdings Misses on Revenues but Beats on EPS

By Seth Jayson - Updated Apr 10, 2017 at 1:43PM

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Just the facts, Fool.

Lincoln Electric Holdings (Nasdaq: LECO) reported earnings on April 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Lincoln Electric Holdings missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.

Gross margins increased, operating margins dropped, net margins grew.

Revenue details
Lincoln Electric Holdings tallied revenue of $718.6 million. The six analysts polled by S&P Capital IQ foresaw sales of $734.8 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.92. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.78 per share. Non-GAAP EPS of $0.92 for Q1 were 21% higher than the prior-year quarter's $0.76 per share. GAAP EPS of $0.80 for Q1 were 5.3% higher than the prior-year quarter's $0.76 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 31.5%, 190 basis points better than the prior-year quarter. Operating margin was 12.5%, 10 basis points worse than the prior-year quarter. Net margin was 9.3%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $772.8 million. On the bottom line, the average EPS estimate is $0.86.

Next year's average estimate for revenue is $2.99 billion. The average EPS estimate is $3.35.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 385 members out of 392 rating the stock outperform, and seven members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 140 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 $59.80.

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Stocks Mentioned

Lincoln Electric Holdings, Inc. Stock Quote
Lincoln Electric Holdings, Inc.
LECO
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