Welding equipment manufacturer Lincoln Electric (NASDAQ: LECO) will be announcing earnings results this Tuesday before market hours. Here’s what to expect.
Lincoln Electric beat analysts’ revenue expectations last quarter, reporting revenues of $1.22 billion, up 12% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ organic revenue estimates.
Is Lincoln Electric a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Lincoln Electric’s revenue to grow 10.7% year on year, improving from the 7.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Lincoln Electric rarely misses Wall Street’s revenue estimates.
Looking at Lincoln Electric’s peers in the industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Snap-on posted flat year-on-year revenue, missing analysts’ expectations by 3.8%, and Gorman-Rupp reported revenues up 11.8%, topping estimates by 6.4%. Snap-on traded down 3.2% following the results.
Read our full analysis of Snap-on’s results here and Gorman-Rupp’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.9% on average over the last month. Lincoln Electric is down 5.6% during the same time and is heading into earnings with an average analyst price target of $303.36 (compared to the current share price of $256.09).
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