Lincoln Electric Holdings, Inc. (LECO), a global welding equipment manufacturer, is set to announce its upcoming earnings results before the market opens. Investors and analysts alike are keeping a watchful eye on how the company will steer through choppy waters of changing revenue guidance. The detailed analysis in the full report will paint a picture of the company’s financial health and strategic strategy moving forward.
The financial community expects Lincoln Electric to earn adjusted earnings of around $2.00 per share. In a display of staying power, the company outperformed analysts’ revenue estimates by 0.5% last quarter. With reported revenues of $983.8 million, it was a year-on-year reduction of 4.8%.
Revenue is expected to continue declining 5.8% year-on-year for this quarter, with revenues coming in at $996.9 million according to analyst estimates. That $15.1 billion projected revenue would still be down 13.7% since the same quarter in fiscal year 2023. Lincoln Electric’s stock performance has shown stunning strength. While it struggled against the same industry headwinds, it actually grew by 1.2% during that period, beating its industry peers overall.
On average, analysts expect that Lincoln Electric will post $4.81 EPS for the current year. That would represent an 18.2x potential upside from their current $193.39 share price. Over the last 30 days, consensus analysts have come out in full support of their estimates for the company. That’s a sure sign of collective disagreement on the company’s short-term outlook.
Lincoln Electric has missed on Wall Street three times in the last 2 years. “It was kind of inevitable that each quarter the company would miss on the revenue side. In the third quarter, the company continued that trend of outpacing analysts’ expectations, delivering a $9.0 million beat on adjusted operating income. Despite this, the company fell short of analysts’ organic revenue expectations in Q3.
