Core Insights - Esab (ESAB) has consistently surpassed earnings estimates and is well-positioned for future earnings reports [1][2] Earnings Performance - In the last two quarters, Esab has exceeded earnings estimates by an average of 7.77% [2] - For the most recent quarter, Esab reported earnings of $1.25 per share against an expectation of $1.12, resulting in a surprise of 11.61% [3] - In the previous quarter, the consensus estimate was $1.27 per share, while the actual earnings were $1.32 per share, leading to a surprise of 3.94% [3] Earnings Estimates and Predictions - Estimates for Esab have been trending higher due to its history of earnings surprises [4] - The stock has a positive Zacks Earnings ESP of +1.75%, indicating bullish sentiment among analysts regarding the company's earnings prospects [7] - The combination of a positive Earnings ESP and a Zacks Rank 3 (Hold) suggests a high likelihood of another earnings beat [7] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [5] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [6] Importance of Earnings ESP - A negative Earnings ESP reduces predictive power but does not necessarily indicate an earnings miss [8] - Companies can still beat consensus EPS estimates despite a negative Earnings ESP, and some stocks may remain stable even if they miss estimates [8] - It is crucial to check a company's Earnings ESP before quarterly releases to enhance the chances of successful investment decisions [9]

Group 1 - ESAB has experienced significant selling pressure, resulting in an 8.2% loss over the past four weeks, but it is now in oversold territory with potential for better earnings than previously predicted [1] - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2] - The RSI reading for ESAB is currently at 28.06, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [5] Group 2 - Analysts have raised earnings estimates for ESAB, with a 0.5% increase in the consensus EPS estimate over the last 30 days, indicating potential price appreciation [6] - ESAB holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which supports the likelihood of a near-term turnaround [7]

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Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Esab (ESAB) came out with quarterly earnings of $1.25 per share, beating the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.61%. A quarter ago, it was expected that this maker of welding and cutting equipment would post earnings of $1.27 per share when it actually produced earnings of $1.32, delivering a surprise of 3.94%.Over the last four qua ...

Financial Performance - ESAB reported third quarter sales of $673 million, a decrease of 1% on a reported basis, but an increase of 1% on a core organic growth basis compared to the prior year[2]. - Net income from continuing operations attributable to ESAB was $69 million, or $1.13 diluted earnings per share, with core adjusted net income of $77 million, or $1.25 diluted earnings per share[2]. - Core adjusted EBITDA for the third quarter was $125 million, representing a 6% increase and a margin expansion of 130 basis points to 19.6% compared to the prior year quarter[2]. - The company reported a net income attributable to ESAB Corporation of $68.2 million for the third quarter, an increase from $57.6 million in the prior year[18]. - Net income from continuing operations for Q3 2024 was $71.0 million, up from $60.8 million in Q3 2023, representing a 19.0% increase[20]. - Adjusted net income for Q3 2024 reached $78.6 million, compared to $69.0 million in Q3 2023, reflecting a 25.0% year-over-year growth[20]. - Adjusted EBITDA for Q3 2024 was $127.4 million, an increase from $122.5 million in Q3 2023, indicating a 4.0% rise[21]. - Adjusted net income margin from continuing operations improved to 11.7% in Q3 2024, compared to 10.2% in Q3 2023[20]. - Core adjusted net income from continuing operations for the nine months ended September 27, 2024, was $232.0 million, up from $203.1 million for the same period in 2023, marking a 14.2% increase[20]. - Adjusted EBITDA margin for Q3 2024 was 18.9%, slightly up from 18.0% in Q3 2023[21]. Sales and Growth Outlook - The company raised its full year 2024 total core sales growth outlook to a range of (1.5)% to (0.5)% and core organic sales growth to 0.0% to 1.0%[4]. - The 2024 core net sales growth range is projected to be between -1.5% and -0.5%[33]. - Organic sales growth in the Americas was 2.0%, while EMEA & APAC experienced a growth of 0.1%[25]. Cash Flow and Investments - ESAB's cash flow remained robust amid a challenging end market environment, enhancing confidence in achieving long-term targets by 2028[3]. - The adjusted free cash flow for the three months ended September 27, 2024, was $95.8 million, compared to $99.9 million for the same period in 2023[31]. - Net cash provided by operating activities was $228,523 thousand, compared to $208,099 thousand in the same period last year, reflecting an increase of about 9.7%[36]. - Net cash used in investing activities rose significantly to $(114,214) thousand, compared to $(42,359) thousand in the prior year, indicating a year-over-year increase of approximately 169%[36]. - Cash and cash equivalents at the end of the period reached $253,670 thousand, a substantial increase from $82,833 thousand at the end of the same period last year, marking a growth of over 206%[36]. Strategic Initiatives - The company emphasized positive volume growth and record margins driven by new product launches and strategic investments in commercial transformation[3]. - The company continues to focus on geographic expansion and bolt-on acquisitions to drive growth[3]. - The company made acquisitions net of cash received totaling $(86,537) thousand, significantly higher than $(18,665) thousand in the prior year, suggesting an aggressive expansion strategy[36]. Cost Management and Charges - Restructuring and related charges for Q3 2024 were $1.9 million, down from $3.1 million in Q3 2023, showing a reduction of 38.7%[20]. - Acquisition-amortization and other related charges for Q3 2024 totaled $10.0 million, compared to $9.3 million in Q3 2023, reflecting a 7.5% increase[20]. - The company experienced a pension settlement loss of $12.2 million for the nine months ended September 27, 2024, compared to no loss reported in the same period of 2023[20]. - The company reported a pension settlement loss of $12,155 thousand, which was not present in the previous year[36]. - Stock-based compensation expense increased to $14,473 thousand, compared to $11,150 thousand in the prior year, reflecting a rise of approximately 30.9%[36]. - Changes in trade receivables resulted in a decrease of $(39,075) thousand, compared to a decrease of $(15,170) thousand in the previous year, indicating a worsening in receivables management[36]. Balance Sheet Highlights - Total current assets increased to $1,221.5 million as of September 27, 2024, compared to $997.7 million at the end of 2023[35]. - Long-term debt rose to $1,080.2 million as of September 27, 2024, up from $1,018.1 million at the end of 2023[35]. - Retained earnings increased to $548.3 million as of September 27, 2024, compared to $350.6 million at the end of 2023[35]. - The company anticipates a currency impact of approximately -2.5% on core net sales for 2024[33].

Esab (ESAB) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 29. On ...

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Esab (ESAB) came out with quarterly earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.27 per share. This compares to earnings of $1.21 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 3.94%. A quarter ago, it was expected that this maker of welding and cutting equipment would post earnings of $1.11 per share when it actually produced earnings of $1.20, delivering a surprise of 8.11%. Over the last four qua ...

The price trend for Esab (ESAB) has been bearish lately and the stock has lost 6% over the past two weeks. However, the formation of a hammer chart pattern in its last trading session indicates that the stock could witness a trend reversal soon, as bulls might have gained significant control over the price to help it find support. The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the only factor that makes a ...