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Lincoln Electric (LECO) Q1 Earnings & Sales Beat Estimates
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Lincoln Electric Holdings, Inc. (LECO - Free Report) reported first-quarter 2023 adjusted earnings of $2.13 per share, beating the Zacks Consensus Estimate of $2.04. The bottom line increased 1% year over year.
Including one-time items, the bottom line was $2.09 per share compared with $2.13 in the prior-year quarter.
Total revenues rose 12.3% year over year to a record $1,039 million. The top line surpassed the Zacks Consensus Estimate of $1,028 million. The improvement in revenues can be attributed to 8.5% growth in organic sales and 5.7% benefits from acquisitions. These were partly offset by unfavorable foreign currency exchange of 1.9%.
Lincoln Electric Holdings, Inc. Price, Consensus and EPS Surprise
The cost of goods sold rose 14.8% to $684 million from the prior-year quarter. The gross profit increased 7.8% to $355 million. The gross margin was 34.2% compared with the year-ago quarter’s 35.6%.
Selling, general and administrative expenses increased 14.1% year over year to $190 million. Adjusted operating profit increased 3.7% to $169 million in the quarter. The adjusted operating margin was 15.9% in the reported quarter compared with 17.6% in the year-ago quarter.
Segmental Performance
Americas Welding: The segment’s total sales increased to $691 million from $562 million in the year-earlier quarter. Adjusted operating income totaled $132 million compared with $112 million in the prior-year quarter.
International Welding: This segment’s revenues fell 1.9% year over year to $259 million in the reported quarter. The segment reported an adjusted operating profit of $30 million compared with the year-ago quarter’s $37 million.
The Harris Products Group: The segment’s first-quarter total sales amounted to around $131 million, reflecting a year-over-year dip of 3.7%. Adjusted operating profit was $19 million compared with the prior-year quarter’s $19.6 million.
Financial Update
Lincoln Electric had cash and cash equivalents of around $199 million at the end of the first quarter of 2023 compared with $154 million at 2022 end. The company generated a record $124 million in cash flow from operations in the quarter under review, up 188% year over year. LECO returned $70 million to shareholders via dividends and share repurchases through the quarter.
The company’s debt to invested capital was 50.8% at the end of the first quarter of 2023 compared with 53.8% at the end of 2022.
Price Performance
Lincoln Electric’s shares have gained 28.2% in the past year against the industry’s decline of 9.9%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Lincoln Electric currently has a Zacks Rank #3 (Hold).
Worthington Industries has an average trailing four-quarter earnings surprise of 27.5%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $4.93 per share. The consensus estimate for 2023 earnings has moved north by 17.7% in the past 60 days. Its shares gained 17.3% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 38.8%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at 85 cents per share. The consensus estimate for 2023 earnings has moved 63.5% north in the past 60 days. MTW’s shares gained 20% in the last year.
The Zacks Consensus Estimate for OI Glass’ 2023 earnings per share is pegged at $2.59. The consensus estimate for 2023 earnings rose 0.8% in the last 60 days. OI has a trailing four-quarter average earnings surprise of 16.5%. Its shares gained 61.6% in the last year.
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Lincoln Electric (LECO) Q1 Earnings & Sales Beat Estimates
Lincoln Electric Holdings, Inc. (LECO - Free Report) reported first-quarter 2023 adjusted earnings of $2.13 per share, beating the Zacks Consensus Estimate of $2.04. The bottom line increased 1% year over year.
Including one-time items, the bottom line was $2.09 per share compared with $2.13 in the prior-year quarter.
Total revenues rose 12.3% year over year to a record $1,039 million. The top line surpassed the Zacks Consensus Estimate of $1,028 million. The improvement in revenues can be attributed to 8.5% growth in organic sales and 5.7% benefits from acquisitions. These were partly offset by unfavorable foreign currency exchange of 1.9%.
Lincoln Electric Holdings, Inc. Price, Consensus and EPS Surprise
Lincoln Electric Holdings, Inc. price-consensus-eps-surprise-chart | Lincoln Electric Holdings, Inc. Quote
Costs and Margins
The cost of goods sold rose 14.8% to $684 million from the prior-year quarter. The gross profit increased 7.8% to $355 million. The gross margin was 34.2% compared with the year-ago quarter’s 35.6%.
Selling, general and administrative expenses increased 14.1% year over year to $190 million. Adjusted operating profit increased 3.7% to $169 million in the quarter. The adjusted operating margin was 15.9% in the reported quarter compared with 17.6% in the year-ago quarter.
Segmental Performance
Americas Welding: The segment’s total sales increased to $691 million from $562 million in the year-earlier quarter. Adjusted operating income totaled $132 million compared with $112 million in the prior-year quarter.
International Welding: This segment’s revenues fell 1.9% year over year to $259 million in the reported quarter. The segment reported an adjusted operating profit of $30 million compared with the year-ago quarter’s $37 million.
The Harris Products Group: The segment’s first-quarter total sales amounted to around $131 million, reflecting a year-over-year dip of 3.7%. Adjusted operating profit was $19 million compared with the prior-year quarter’s $19.6 million.
Financial Update
Lincoln Electric had cash and cash equivalents of around $199 million at the end of the first quarter of 2023 compared with $154 million at 2022 end. The company generated a record $124 million in cash flow from operations in the quarter under review, up 188% year over year. LECO returned $70 million to shareholders via dividends and share repurchases through the quarter.
The company’s debt to invested capital was 50.8% at the end of the first quarter of 2023 compared with 53.8% at the end of 2022.
Price Performance
Lincoln Electric’s shares have gained 28.2% in the past year against the industry’s decline of 9.9%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Lincoln Electric currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Worthington Industries, Inc. (WOR - Free Report) , The Manitowoc Company, Inc. (MTW - Free Report) , and OI Glass Inc. (OI - Free Report) . WOR and MTW flaunt a Zacks Rank #1 (Strong Buy) at present, and OI has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Worthington Industries has an average trailing four-quarter earnings surprise of 27.5%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $4.93 per share. The consensus estimate for 2023 earnings has moved north by 17.7% in the past 60 days. Its shares gained 17.3% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 38.8%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at 85 cents per share. The consensus estimate for 2023 earnings has moved 63.5% north in the past 60 days. MTW’s shares gained 20% in the last year.
The Zacks Consensus Estimate for OI Glass’ 2023 earnings per share is pegged at $2.59. The consensus estimate for 2023 earnings rose 0.8% in the last 60 days. OI has a trailing four-quarter average earnings surprise of 16.5%. Its shares gained 61.6% in the last year.