Lincoln Electric (NASDAQ:LECO) Posts Earnings Results, Beats Expectations By $0.17 EPS

Key Points

• Lincoln Electric beat earnings expectations, reporting quarterly EPS of $2.98 versus the analyst consensus of $2.81, a $0.17 outperformance. The company posted a 39.23% return on equity and a 12.35% net margin.
• The company raised its quarterly dividend to $0.87 per share from $0.79, equating to $3.48 annually and a 1.3% yield. Its dividend payout ratio is 31.57%.
• Analysts maintain a generally positive outlook, with Lincoln Electric carrying a “Moderate Buy” consensus rating and an average price target of $306.78, compared with a reported share price of $258.65.

Lincoln Electric (NASDAQ:LECO - Get Free Report) posted its earnings results on Tuesday. The industrial products company reported $2.98 EPS for the quarter, topping analysts' consensus estimates of $2.81 by $0.17, Zacks reports. Lincoln Electric had a return on equity of 39.23% and a net margin of 12.35%.

Lincoln Electric Stock Performance

NASDAQ LECO opened at $258.65 on Tuesday. The business's 50 day moving average price is $267.97 and its 200-day moving average price is $265.31. Lincoln Electric has a fifty-two week low of $216.22 and a fifty-two week high of $310.00. The company has a market cap of $14.10 billion, a P/E ratio of 25.84, a P/E/G ratio of 1.53 and a beta of 1.21. The company has a debt-to-equity ratio of 0.74, a quick ratio of 1.20 and a current ratio of 1.98.

Lincoln Electric Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Stockholders of record on Thursday, December 31st will be given a dividend of $0.87 per share. The ex-dividend date of this dividend is Thursday, December 31st. This represents a $3.48 annualized dividend and a dividend yield of 1.3%. This is an increase from Lincoln Electric's previous quarterly dividend of $0.79. Lincoln Electric's dividend payout ratio is presently 31.57%.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. Wall Street Zen downgraded Lincoln Electric from a "buy" rating to a "hold" rating in a research report on Saturday, October 10th. Stifel Nicolaus set a $271.00 price target on shares of Lincoln Electric in a research report on Monday, October 19th. Weiss Ratings raised shares of Lincoln Electric from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. Morgan Stanley upgraded shares of Lincoln Electric from an "underweight" rating to an "equal weight" rating and increased their price objective for the company from $257.00 to $283.00 in a research report on Monday, August 10th. Finally, UBS Group assumed coverage on shares of Lincoln Electric in a research report on Monday, August 10th. They set a "buy" rating and a $340.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Lincoln Electric presently has an average rating of "Moderate Buy" and an average target price of $306.78.

Lincoln Electric Company Profile

Lincoln Electric Holdings, Inc NASDAQ: LECO is a global manufacturer of welding, cutting and industrial automation products. The company serves customers in industries including construction, manufacturing, energy, transportation and heavy equipment.

Its product portfolio includes arc-welding equipment, welding consumables such as electrodes and welding wire, plasma-cutting systems, welding accessories and personal protective equipment. Lincoln Electric also provides robotic and automated welding systems, industrial automation solutions, application engineering, training and maintenance services.

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