Lincoln Electric (NASDAQ:LECO) Announces Earnings Results

Key Points

• Lincoln Electric reported adjusted EPS of $2.50 (beat by $0.07) and record quarterly sales of $1.121B, with revenue up ~11.7% year‑over‑year and a net margin of 12.3%.
• Management said results were driven mainly by roughly 10% price increases and the Alloy Steel acquisition while consolidated volumes fell ~2.6%, and it raised full‑year net sales guidance to high single‑digit growth expecting to reach price‑cost neutrality by Q3.
• International performance was pressured by automation project timing and the Middle East conflict, which management estimates is cutting sales by about $8–10M per quarter and contributed to a ~10% volume decline in International Welding.

Lincoln Electric (NASDAQ:LECO - Get Free Report) issued its quarterly earnings results on Thursday. The industrial products company reported $2.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.43 by $0.07, Briefing.com reports. Lincoln Electric had a net margin of 12.30% and a return on equity of 39.35%. The business had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.07 billion. During the same quarter in the prior year, the business posted $2.16 EPS. Lincoln Electric's revenue for the quarter was up 11.7% compared to the same quarter last year.

Here are the key takeaways from Lincoln Electric's conference call:

• Record quarterly sales of $1.121B and adjusted EPS of $2.50 were reported, but results were driven mainly by ~10% price increases and the Alloy Steel acquisition while consolidated volumes declined ~2.6%.
• Management implemented new pricing actions (effective early May) and expects to reach price-cost neutrality by Q3, increasing full-year net sales guidance to high single-digit growth (about three-quarters price / one-quarter volume).
• Demand is improving in the Americas—consumables showed low-double-digit volume gains, orders and backlog strengthened into April, and automation is expected to return to modest growth in Q2 with further improvement in H2.
• International performance was pressured by automation project timing and the Middle East conflict, which management estimates is reducing sales by roughly $8–10M per quarter and contributed to a 10% volume decline in International Welding.
• Cash and capital allocation remain disciplined—operating cash flow was $102M (temporarily impacted by higher inventories to support service levels), the company returned $101M via dividends and buybacks, and adjusted ROIC stayed at 21.5%.

Lincoln Electric Stock Performance

Shares of NASDAQ:LECO traded up $7.49 during midday trading on Thursday, reaching $265.00. The company's stock had a trading volume of 851,706 shares, compared to its average volume of 378,582. The firm has a market capitalization of $14.53 billion, a PE ratio of 28.43, a P/E/G ratio of 1.62 and a beta of 1.28. Lincoln Electric has a twelve month low of $175.89 and a twelve month high of $310.00. The stock has a fifty day moving average of $262.05 and a 200 day moving average of $253.39. The company has a quick ratio of 1.16, a current ratio of 1.82 and a debt-to-equity ratio of 0.78.

Lincoln Electric Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th will be paid a $0.79 dividend. The ex-dividend date is Tuesday, June 30th. This represents a $3.16 dividend on an annualized basis and a dividend yield of 1.2%. Lincoln Electric's dividend payout ratio is presently 33.91%.

Institutional Trading of Lincoln Electric

Hedge funds and other institutional investors have recently made changes to their positions in the business. NewEdge Advisors LLC grew its position in Lincoln Electric by 8.6% during the first quarter. NewEdge Advisors LLC now owns 2,477 shares of the industrial products company's stock valued at $468,000 after buying an additional 197 shares during the period. Jones Financial Companies Lllp grew its position in Lincoln Electric by 553.4% during the first quarter. Jones Financial Companies Lllp now owns 1,137 shares of the industrial products company's stock valued at $215,000 after buying an additional 963 shares during the period. Goldman Sachs Group Inc. grew its position in Lincoln Electric by 8.9% during the first quarter. Goldman Sachs Group Inc. now owns 362,561 shares of the industrial products company's stock valued at $68,582,000 after buying an additional 29,505 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Lincoln Electric by 8.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 137,540 shares of the industrial products company's stock valued at $26,017,000 after buying an additional 10,961 shares during the period. Finally, Geneos Wealth Management Inc. grew its position in Lincoln Electric by 980.8% during the first quarter. Geneos Wealth Management Inc. now owns 281 shares of the industrial products company's stock valued at $53,000 after buying an additional 255 shares during the period. Institutional investors and hedge funds own 79.61% of the company's stock.

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Robert W. Baird set a $330.00 price target on shares of Lincoln Electric in a research note on Friday, February 13th. Weiss Ratings upgraded shares of Lincoln Electric from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, April 16th. Morgan Stanley upped their price target on shares of Lincoln Electric from $240.00 to $247.00 and gave the company an "underweight" rating in a research note on Monday, March 30th. Roth Mkm restated a "buy" rating and set a $297.00 price target (up from $285.00) on shares of Lincoln Electric in a research note on Tuesday, February 3rd. Finally, Stifel Nicolaus cut their price objective on shares of Lincoln Electric from $300.00 to $264.00 and set a "hold" rating on the stock in a research note on Wednesday, April 8th. Five research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $291.14.

About Lincoln Electric

Lincoln Electric Holdings, Inc NASDAQ: LECO is a global manufacturer and distributor of welding products, robotic welding systems, plasma and oxyfuel cutting equipment, and surface treatment systems. The company's portfolio encompasses welding consumables such as electrodes and wires, as well as power sources, torches, and automated welding cells. Lincoln Electric also offers software solutions and training services designed to optimize productivity and quality in fabrication and manufacturing operations.

Founded in 1895 by John C.

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