Lincoln Electric Holdings Beats on Both Top and Bottom Lines
Lincoln Electric Holdings (NAS: LECO) reported earnings on April 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Lincoln Electric Holdings beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share improved significantly.
Margins improved across the board.
Lincoln Electric Holdings reported revenue of $727.1 million. The five analysts polled by S&P Capital IQ expected to see a top line of $699.3 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $599.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.76. The five earnings estimates compiled by S&P Capital IQ predicted $0.68 per share. GAAP EPS of $0.76 for Q1 were 36% higher than the prior-year quarter's $0.56 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.6%, 270 basis points better than the prior-year quarter. Operating margin was 12.6%, 260 basis points better than the prior-year quarter. Net margin was 8.8%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $782.9 million. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $3.06 billion. The average EPS estimate is $3.06.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 368 members out of 375 rating the stock outperform, and seven members rating it underperform. Among 123 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 123 give Lincoln Electric Holdings a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lincoln Electric Holdings is outperform, with an average price target of $53.50.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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