Welding equipment manufacturer Lincoln Electric (NASDAQ: LECO) will be announcing earnings results this Thursday before the bell. Here’s what investors should know.
Lincoln Electric missed analysts’ revenue expectations last quarter, reporting revenues of $1.08 billion, up 5.5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ organic revenue estimates and a slight miss of analysts’ 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 7.2% year on year, improving from the 2.4% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days. Lincoln Electric has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Lincoln Electric’s peers in the industrial machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Snap-on delivered year-on-year revenue growth of 5.2%, beating analysts’ expectations by 2.4%, and Hillman reported revenues up 3%, falling short of estimates by 0.7%. Snap-on traded down 1% following the results while Hillman was also down 5.2%.
Read our full analysis of Snap-on’s results here and Hillman’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 14.1% on average over the last month. Lincoln Electric is up 5.8% during the same time and is heading into earnings with an average analyst price target of $290.44 (compared to the current share price of $258.48).
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