Welding equipment manufacturer Lincoln Electric (NASDAQ: LECO) will be announcing earnings results this Thursday before market open. Here’s what to look for.
Lincoln Electric beat analysts’ revenue expectations last quarter, reporting revenues of $1.12 billion, up 11.7% year on year. It was a mixed quarter for the company, with a decent 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 7.1% year on year, in line with the 6.6% 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 Q2 results, giving us a hint as to what we can expect. Snap-on delivered year-on-year revenue growth of 4.2%, beating analysts’ expectations by 1.1%, and GE Aerospace reported revenues up 24.5%, topping estimates by 6%. Snap-on’s stock price was unchanged after the resultswhile GE Aerospace was down 3.2%.
Read our full analysis of Snap-on’s results here and GE Aerospace’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the 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 3.3% on average over the last month. Lincoln Electric is up 1.2% during the same time and is heading into earnings with an average analyst price target of $297 (compared to the current share price of $267.23).
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.
