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Lincoln Electric (LECO) Q4 Earnings & Sales Top Estimates
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Lincoln Electric Holdings, Inc. (LECO - Free Report) reported fourth-quarter 2021 adjusted earnings of $1.61 per share, beating the Zacks Consensus Estimate of $1.55. The bottom line increased 29.8% year over year.
Including one-time items, which primarily relate to the termination of a pension plan, the bottom line came in at $1.25 per share compared with $1.08 in the prior-year quarter.
Total revenues increased 21.7% year over year to $844 million. The improvement in revenues can be attributed to 19% growth in organic sales and a 4.7% benefit from acquisitions. These were partly offset by unfavorable foreign currency exchange of 2%. The top line surpassed the Zacks Consensus Estimate of $816 million.
Costs and Margins
The cost of goods sold rose 23% to $572 million from the prior-year quarter’s levels. The gross profit climbed 19% to $273 million. The gross margin came in at 32.3% compared with the year-ago quarter’s 33%.
Selling, general and administrative expenses increased 10.6% year over year to $151 million. The adjusted operating profit increased 31.6% to $122 million in the quarter. The adjusted operating margin was 14.5% in the reported quarter compared with 13.4% in the year-ago quarter.
Lincoln Electric Holdings, Inc. Price, Consensus and EPS Surprise
Americas Welding: The segment’s sales increased to $480 million from $387 million in the year-earlier quarter. Adjusted operating income totaled $84 million compared with $69 million witnessed in the prior-year quarter.
International Welding: This segment’s revenues increased 14.3% year over year to $246 million in the reported quarter. The segment reported an adjusted operating profit of $28 million compared with the year-ago quarter’s $15 million.
The Harris Products Group: The segment’s fourth-quarter sales amounted to around $118 million, reflecting a year-over-year improvement of 28%. Adjusted operating profit was $16 million compared with the prior-year quarter’s $13 million.
Financial Update
Lincoln Electric had cash and cash equivalents of around $193 million at the end of 2021 compared with $257 million at the 2020-end. The company generated $365 million cash flow from operations in 2021 compared with $351 million in 2020.
The company’s debt to invested capital was 47.1% in 2021 compared with 47.6% in 2020.
2021 Performance
Lincoln Electric reported adjusted earnings per share (EPS) of a record $6.22 in 2021 compared with $4.15 reported in the prior year. Earnings beat the Zacks Consensus Estimate of $6.15. Including one-time items, the bottom line came in at $4.60, up 35% from $3.42 reported in 2020.
Sales were up 22% year over year to a record $3.23 billion. The top line surpassed the Zacks Consensus Estimate of $3.21 billion.
Price Performance
Lincoln Electric’s shares have declined 4.5% in the past year against the industry’s growth of 10%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Lincoln Electric currently carries a Zacks Rank #3 (Hold).
Dover’s fourth-quarter 2021 adjusted EPS increased 15% year over year to $1.78, beating the Zacks Consensus Estimate of $1.66. DOV has a trailing four-quarter earnings surprise of 12.3%, on average.
Dover has an estimated earnings growth rate of around 12.7% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 4%. DOV’s shares have rallied around 44.5% in a year.
Silgan Holdings’ fourth-quarter 2021 adjusted EPS increased 32% year over year to a record 79 cents, beating the Zacks Consensus Estimate of 73 cents. SLGN has a trailing four-quarter earnings surprise of 3.8%, on average.
Silgan has a projected earnings growth rate of 13.5% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 3% in the past 60 days. In a year, SLGN has appreciated 19.7%.
Applied Industrial Technologies reported adjusted EPS of $1.46 in second-quarter fiscal 2022 (ended Dec 31, 2020), up 49% year on year and beating the Zacks Consensus Estimate of $1.09. AIT has a trailing four-quarter earnings surprise of 27.9%, on average.
Applied Industrial Technologies has an expected earnings growth rate of 24.8% for fiscal 2022. The Zacks Consensus Estimate for fiscal year earnings has moved up 9.4% in the past 60 days. AIT’s shares have appreciated 36% in a year.
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Lincoln Electric (LECO) Q4 Earnings & Sales Top Estimates
Lincoln Electric Holdings, Inc. (LECO - Free Report) reported fourth-quarter 2021 adjusted earnings of $1.61 per share, beating the Zacks Consensus Estimate of $1.55. The bottom line increased 29.8% year over year.
Including one-time items, which primarily relate to the termination of a pension plan, the bottom line came in at $1.25 per share compared with $1.08 in the prior-year quarter.
Total revenues increased 21.7% year over year to $844 million. The improvement in revenues can be attributed to 19% growth in organic sales and a 4.7% benefit from acquisitions. These were partly offset by unfavorable foreign currency exchange of 2%. The top line surpassed the Zacks Consensus Estimate of $816 million.
Costs and Margins
The cost of goods sold rose 23% to $572 million from the prior-year quarter’s levels. The gross profit climbed 19% to $273 million. The gross margin came in at 32.3% compared with the year-ago quarter’s 33%.
Selling, general and administrative expenses increased 10.6% year over year to $151 million. The adjusted operating profit increased 31.6% to $122 million in the quarter. The adjusted operating margin was 14.5% in the reported quarter compared with 13.4% in the year-ago quarter.
Lincoln Electric Holdings, Inc. Price, Consensus and EPS Surprise
Lincoln Electric Holdings, Inc. price-consensus-eps-surprise-chart | Lincoln Electric Holdings, Inc. Quote
Segment Performance
Americas Welding: The segment’s sales increased to $480 million from $387 million in the year-earlier quarter. Adjusted operating income totaled $84 million compared with $69 million witnessed in the prior-year quarter.
International Welding: This segment’s revenues increased 14.3% year over year to $246 million in the reported quarter. The segment reported an adjusted operating profit of $28 million compared with the year-ago quarter’s $15 million.
The Harris Products Group: The segment’s fourth-quarter sales amounted to around $118 million, reflecting a year-over-year improvement of 28%. Adjusted operating profit was $16 million compared with the prior-year quarter’s $13 million.
Financial Update
Lincoln Electric had cash and cash equivalents of around $193 million at the end of 2021 compared with $257 million at the 2020-end. The company generated $365 million cash flow from operations in 2021 compared with $351 million in 2020.
The company’s debt to invested capital was 47.1% in 2021 compared with 47.6% in 2020.
2021 Performance
Lincoln Electric reported adjusted earnings per share (EPS) of a record $6.22 in 2021 compared with $4.15 reported in the prior year. Earnings beat the Zacks Consensus Estimate of $6.15. Including one-time items, the bottom line came in at $4.60, up 35% from $3.42 reported in 2020.
Sales were up 22% year over year to a record $3.23 billion. The top line surpassed the Zacks Consensus Estimate of $3.21 billion.
Price Performance
Lincoln Electric’s shares have declined 4.5% in the past year against the industry’s growth of 10%.
Zacks Rank & Stocks to Consider
Lincoln Electric currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include Dover Corporation (DOV - Free Report) , Silgan Holdings Inc. (SLGN - Free Report) and Applied Industrial Technologies, Inc. (AIT - Free Report) , each carrying a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dover’s fourth-quarter 2021 adjusted EPS increased 15% year over year to $1.78, beating the Zacks Consensus Estimate of $1.66. DOV has a trailing four-quarter earnings surprise of 12.3%, on average.
Dover has an estimated earnings growth rate of around 12.7% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 4%. DOV’s shares have rallied around 44.5% in a year.
Silgan Holdings’ fourth-quarter 2021 adjusted EPS increased 32% year over year to a record 79 cents, beating the Zacks Consensus Estimate of 73 cents. SLGN has a trailing four-quarter earnings surprise of 3.8%, on average.
Silgan has a projected earnings growth rate of 13.5% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 3% in the past 60 days. In a year, SLGN has appreciated 19.7%.
Applied Industrial Technologies reported adjusted EPS of $1.46 in second-quarter fiscal 2022 (ended Dec 31, 2020), up 49% year on year and beating the Zacks Consensus Estimate of $1.09. AIT has a trailing four-quarter earnings surprise of 27.9%, on average.
Applied Industrial Technologies has an expected earnings growth rate of 24.8% for fiscal 2022. The Zacks Consensus Estimate for fiscal year earnings has moved up 9.4% in the past 60 days. AIT’s shares have appreciated 36% in a year.