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Lincoln Electric (LECO) Q4 Earnings & Sales Beat, Rise Y/Y
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Lincoln Electric Holdings, Inc. (LECO - Free Report) reported fourth-quarter 2022 record adjusted earnings of $1.94 per share, beating the Zacks Consensus Estimate of $1.90. The bottom line increased 21% year over year.
Including one-time items, the bottom line was a record $1.87 per share compared with $1.25 in the prior-year quarter.
Total revenues increased 10.3% year over year to a record $931 million. The improvement in revenues can be attributed to 14.3% growth in organic sales and a 0.7% benefit from acquisitions. These were partly offset by unfavorable foreign currency exchange of 4.7%. The top line surpassed the Zacks Consensus Estimate of $927 million.
Costs and Margins
The cost of goods sold rose 9% to $623 million from the prior-year quarter. The gross profit increased 13.1% to $308 million. The gross margin came in at 33.1% compared with the year-ago quarter’s 32.3%.
Selling, general and administrative expenses increased 8.9% year over year to $164 million. The adjusted operating profit increased 20.2% to $147 million in the quarter. The adjusted operating margin was 15.8% in the reported quarter compared with 14.5% in the year-ago quarter.
Lincoln Electric Holdings, Inc. Price, Consensus and EPS Surprise
Americas Welding: The segment’s sales increased to $574 million from $480 million in the year-earlier quarter. Adjusted operating income totaled $114 million compared with $84 million witnessed in the prior-year quarter.
International Welding: This segment’s revenues decreased 1% year over year to $243 million in the reported quarter. The segment reported an adjusted operating profit of $23 million compared with the year-ago quarter’s $28 million.
The Harris Products Group: The segment’s fourth-quarter sales amounted to around $114 million, reflecting a year-over-year decline of 3.5%. Adjusted operating profit was $12 million compared with the prior-year quarter’s $16 million.
Financial Update
Lincoln Electric had cash and cash equivalents of around $197 million at the end of 2022 compared with $193 million at 2021-end. The company generated $383 million cash flow from operations in 2022 compared with $365 million in 2021.
The company’s debt to invested capital was 53.8% in 2022 compared with 47.1% in 2021.
2022 Performance
Lincoln Electric reported adjusted earnings per share (EPS) of a record $8.27 in 2022 compared with $6.22 in the prior year. Earnings beat the Zacks Consensus Estimate of $8.22. Including one-time items, the bottom line was a record $8.04, up 75% from the $4.60 reported in 2021.
Sales were up 16.3% year over year to a record $3.76 billion. The top line was in line with the Zacks Consensus Estimate.
Price Performance
Lincoln Electric’s shares have gained 28.3% in the past year against the industry’s fall of 22.1%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Lincoln Electric currently carries a Zacks Rank #2 (Buy).
OI Glass has an average trailing four-quarter earnings surprise of 16.4%. The Zacks Consensus Estimate for OI’s 2023 earnings is pegged at $2.51 per share. This indicates a 9.13% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved 12.5% north in the past 60 days. OI’s shares gained 66.3% in the last year.
Tenaris has an average trailing four-quarter earnings surprise of 11.5%. The Zacks Consensus Estimate for TS’ 2023 earnings is pegged at $5.32 per share. This indicates a 22.4% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved north by 2.7% in the past 60 days. Its shares gained 36.8% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.08, suggesting an increase of 20.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings moved 0.6% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 20.7% in the last year.
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Lincoln Electric (LECO) Q4 Earnings & Sales Beat, Rise Y/Y
Lincoln Electric Holdings, Inc. (LECO - Free Report) reported fourth-quarter 2022 record adjusted earnings of $1.94 per share, beating the Zacks Consensus Estimate of $1.90. The bottom line increased 21% year over year.
Including one-time items, the bottom line was a record $1.87 per share compared with $1.25 in the prior-year quarter.
Total revenues increased 10.3% year over year to a record $931 million. The improvement in revenues can be attributed to 14.3% growth in organic sales and a 0.7% benefit from acquisitions. These were partly offset by unfavorable foreign currency exchange of 4.7%. The top line surpassed the Zacks Consensus Estimate of $927 million.
Costs and Margins
The cost of goods sold rose 9% to $623 million from the prior-year quarter. The gross profit increased 13.1% to $308 million. The gross margin came in at 33.1% compared with the year-ago quarter’s 32.3%.
Selling, general and administrative expenses increased 8.9% year over year to $164 million. The adjusted operating profit increased 20.2% to $147 million in the quarter. The adjusted operating margin was 15.8% in the reported quarter compared with 14.5% 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
Segmental Performance
Americas Welding: The segment’s sales increased to $574 million from $480 million in the year-earlier quarter. Adjusted operating income totaled $114 million compared with $84 million witnessed in the prior-year quarter.
International Welding: This segment’s revenues decreased 1% year over year to $243 million in the reported quarter. The segment reported an adjusted operating profit of $23 million compared with the year-ago quarter’s $28 million.
The Harris Products Group: The segment’s fourth-quarter sales amounted to around $114 million, reflecting a year-over-year decline of 3.5%. Adjusted operating profit was $12 million compared with the prior-year quarter’s $16 million.
Financial Update
Lincoln Electric had cash and cash equivalents of around $197 million at the end of 2022 compared with $193 million at 2021-end. The company generated $383 million cash flow from operations in 2022 compared with $365 million in 2021.
The company’s debt to invested capital was 53.8% in 2022 compared with 47.1% in 2021.
2022 Performance
Lincoln Electric reported adjusted earnings per share (EPS) of a record $8.27 in 2022 compared with $6.22 in the prior year. Earnings beat the Zacks Consensus Estimate of $8.22. Including one-time items, the bottom line was a record $8.04, up 75% from the $4.60 reported in 2021.
Sales were up 16.3% year over year to a record $3.76 billion. The top line was in line with the Zacks Consensus Estimate.
Price Performance
Lincoln Electric’s shares have gained 28.3% in the past year against the industry’s fall of 22.1%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Lincoln Electric currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Industrial Products sector are OI Glass (OI - Free Report) , Tenaris (TS - Free Report) and Deere & Company (DE - Free Report) . OI and TS flaunt a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
OI Glass has an average trailing four-quarter earnings surprise of 16.4%. The Zacks Consensus Estimate for OI’s 2023 earnings is pegged at $2.51 per share. This indicates a 9.13% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved 12.5% north in the past 60 days. OI’s shares gained 66.3% in the last year.
Tenaris has an average trailing four-quarter earnings surprise of 11.5%. The Zacks Consensus Estimate for TS’ 2023 earnings is pegged at $5.32 per share. This indicates a 22.4% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved north by 2.7% in the past 60 days. Its shares gained 36.8% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.08, suggesting an increase of 20.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings moved 0.6% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 20.7% in the last year.