Welding equipment manufacturer Lincoln Electric (NASDAQ: LECO) will be reporting earnings this Thursday before the bell. Here’s what to look for.
Lincoln Electric beat analysts’ revenue expectations by 5.1% last quarter, reporting revenues of $1.09 billion, up 6.6% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA 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, analysts are expecting Lincoln Electric’s revenue to grow 6.2% year on year to $1.04 billion, a reversal from the 4.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.42 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lincoln Electric has missed Wall Street’s revenue estimates twice over the last two years.
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 delivered year-on-year revenue growth of 3.6%, beating analysts’ expectations by 2.7%, and Luxfer reported a revenue decline of 6.5%, in line with consensus estimates. Snap-on traded up 2.2% following the results.
Read our full analysis of Snap-on’s results here and Luxfer’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 3.1% on average over the last month. Lincoln Electric is up 2.6% during the same time and is heading into earnings with an average analyst price target of $259.70 (compared to the current share price of $240.64).
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