Lincoln Electric Holdings, Inc. (LECO - Free Report) reported adjusted earnings of 97 cents per share in second-quarter 2017, up 17% year over year. Earnings also surpassed the Zacks Consensus Estimate of 94 cents.
In the second quarter, the company witnessed sales growth across all three segments as well as in most end markets. Operational initiatives and volume improvements helped counter inflated raw material costs and operating expenses.
Including one-time items, earnings in the reported quarter came in at 92 cents compared with 45 cents recorded in the prior-year quarter. The reported quarter’s earnings per share include acquisition transaction and integration costs of 5 cents per share, related to the proposed acquisition of Air Liquide Welding.
Total revenue went up 5.8% year over year to $627 million, driven by 3.2% higher volumes and 2.6% increase in product prices. However, excluding Venezuela from prior-year results due to the deconsolidation of the operation, sales increased 6.9% on the back of 4.2% higher volumes and a 2.7% increase in price. Sales also beat the Zacks Consensus Estimate of $622 million.
Costs and Margins
Cost of goods sold increased 5.1% year over year to $409 million. Gross profit advanced 7% year over year to $217 million. Gross margin expanded 40 basis points (bps) year over year to 34.7%.
Selling, general and administrative expenses flared up 8% to $130 million from $120 million recorded in the prior-year quarter. Adjusted operating profit rose 12% year over year to $92 million in the reported quarter. Operating margin expanded 80 bps year over year to 14.7%.
Lincoln Electric Holdings, Inc. Price, Consensus and EPS Surprise