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Lincoln Electric (LECO) Lags Q1 Earnings & Revenue Estimates
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Lincoln Electric Holdings, Inc. (LECO - Free Report) delivered adjusted earnings of $1.17 per share in first-quarter 2019, up 6.4% year over year. The reported figure, however, missed the Zacks Consensus Estimate of $1.23. Earnings growth was driven by favorable mix and the company’s price management efforts to mitigate inflation and lower volumes.
Including one-time items, earnings in the reported quarter came in at $1.12 compared with 92 cents recorded in the prior-year quarter.
Total revenues marginally improved to $759.2 million compared to $757.7 million posted in the year-ago quarter. Organic sales growth was 0.9% in the reported quarter. Sales missed the Zacks Consensus Estimate of $767 million.
Lincoln Electric Holdings, Inc. Price, Consensus and EPS Surprise
Cost of goods sold edged down to $500.7 million from $501.1 million recorded in the prior-year quarter. Gross profit inched up 0.7% year over year to $258.4 million. Gross margin came in at 34.0% compared with the prior-year quarter’s 33.9%.
Selling, general and administrative expenses slipped 0.5% to $160.4 million from the year-earlier quarter. Adjusted operating profit improved 1.6% year over year to $98.8 million in the reported quarter. Operating margin came in at 13.0% compared with 12.8% witnessed in the year-ago quarter.
Financial Update
Lincoln Electric had cash and cash equivalents of $267 million at the end of the first quarter compared with $369 million at the end of the prior-year quarter. The company recorded cash flow from operations of $25.9 million in the January-March quarter compared with $43.8 million witnessed in the year-earlier period.
During the first quarter, Lincoln Electric returned $106 million to shareholders through dividend and share repurchases.
Price Performance
Lincoln Electric’s shares have gained around 4.2% over the past year, outperforming the industry’s growth of 2.3%.
Zacks Rank and Stocks to Consider
Lincoln Electric currently carries a Zacks Rank #3 (Hold).
DMC Global has an estimated earnings growth rate of 77.3% for the ongoing year. The company’s shares have soared 111.8%, in the past year.
Lawson Products has an impressive expected earnings growth rate of 102.5% for the current year. The stock has appreciated 37.1% in a year’s time.
DXP Enterprises has a projected earnings growth rate of 21.6% for 2019. The company’s shares have gained 22.5%, over the past year.
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Image: Bigstock
Lincoln Electric (LECO) Lags Q1 Earnings & Revenue Estimates
Lincoln Electric Holdings, Inc. (LECO - Free Report) delivered adjusted earnings of $1.17 per share in first-quarter 2019, up 6.4% year over year. The reported figure, however, missed the Zacks Consensus Estimate of $1.23. Earnings growth was driven by favorable mix and the company’s price management efforts to mitigate inflation and lower volumes.
Including one-time items, earnings in the reported quarter came in at $1.12 compared with 92 cents recorded in the prior-year quarter.
Total revenues marginally improved to $759.2 million compared to $757.7 million posted in the year-ago quarter. Organic sales growth was 0.9% in the reported quarter. Sales missed the Zacks Consensus Estimate of $767 million.
Lincoln Electric Holdings, Inc. Price, Consensus and EPS Surprise
Lincoln Electric Holdings, Inc. Price, Consensus and EPS Surprise | Lincoln Electric Holdings, Inc. Quote
Costs and Margins
Cost of goods sold edged down to $500.7 million from $501.1 million recorded in the prior-year quarter. Gross profit inched up 0.7% year over year to $258.4 million. Gross margin came in at 34.0% compared with the prior-year quarter’s 33.9%.
Selling, general and administrative expenses slipped 0.5% to $160.4 million from the year-earlier quarter. Adjusted operating profit improved 1.6% year over year to $98.8 million in the reported quarter. Operating margin came in at 13.0% compared with 12.8% witnessed in the year-ago quarter.
Financial Update
Lincoln Electric had cash and cash equivalents of $267 million at the end of the first quarter compared with $369 million at the end of the prior-year quarter. The company recorded cash flow from operations of $25.9 million in the January-March quarter compared with $43.8 million witnessed in the year-earlier period.
During the first quarter, Lincoln Electric returned $106 million to shareholders through dividend and share repurchases.
Price Performance
Lincoln Electric’s shares have gained around 4.2% over the past year, outperforming the industry’s growth of 2.3%.
Zacks Rank and Stocks to Consider
Lincoln Electric currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the Industrial Products sector are DMC Global Inc. (BOOM - Free Report) , Lawson Products, Inc. and DXP Enterprises, Inc. (DXPE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DMC Global has an estimated earnings growth rate of 77.3% for the ongoing year. The company’s shares have soared 111.8%, in the past year.
Lawson Products has an impressive expected earnings growth rate of 102.5% for the current year. The stock has appreciated 37.1% in a year’s time.
DXP Enterprises has a projected earnings growth rate of 21.6% for 2019. The company’s shares have gained 22.5%, over the past year.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>