Lincoln Electric (LECO) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

For the quarter ended March 2024, Lincoln Electric Holdings (LECO) reported revenue of $981.2 million, down 5.6% over the same period last year. EPS came in at $2.23, compared to $2.13 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $1.04 billion, representing a surprise of -5.36%. The company delivered an EPS surprise of +3.72%, with the consensus EPS estimate being $2.15.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Lincoln Electric performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net Sales- The Harris Products Group: $121.34 million compared to the $123.43 million average estimate based on five analysts. The reported number represents a change of -5.4% year over year.
  • Net Sales- International Welding: $235.76 million versus $248.95 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -6.6% change.
  • Net Sales- Americas Welding: $624.10 million compared to the $661.21 million average estimate based on five analysts. The reported number represents a change of -5.3% year over year.
  • Inter-segment sales- Americas Welding: $29.98 million compared to the $32.36 million average estimate based on three analysts.
  • Inter-segment sales- International Welding: $8.41 million compared to the $6.90 million average estimate based on three analysts.
  • Inter-segment sales- The Harris Products Group: $3.09 million versus $2.72 million estimated by three analysts on average.
  • Total Sales- The Harris Products Group: $124.43 million compared to the $125.13 million average estimate based on three analysts. The reported number represents a change of -5.1% year over year.
  • Total Sales- Corporate and Elimination: -$41.48 million versus the three-analyst average estimate of -$42.01 million. The reported number represents a year-over-year change of -1.2%.
  • Total Sales- Americas Welding: $654.08 million versus $698.08 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -5.3% change.
  • Total Sales- International Welding: $244.17 million versus $253.19 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -5.8% change.
  • Adjusted EBIT- Americas Welding: $136.10 million compared to the $132.30 million average estimate based on five analysts.
  • Adjusted EBIT- Corporate/Eliminations: -$10.08 million versus -$11.83 million estimated by five analysts on average.
View all Key Company Metrics for Lincoln Electric here>>>

Shares of Lincoln Electric have returned -8% over the past month versus the Zacks S&P 500 composite's -3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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