The market expects Lincoln Electric Holdings (LECO) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Lincoln Electric Holdings (LECO) , which belongs to the Zacks Manufacturing - Tools & Related Products industry, could be a great candidate to consider.This manufacturer of specialized welding products and other equipment has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for ...

Founded in 1895, now with over 12,000 employees, Lincoln Electric Holdings, Inc. (NASDAQ: LECO ) is the world's largest manufacturer of arc welding products. It manufactures in cells a line of arc welding equipment, with additional welding productsEquity strategist [Bernard Holdings]. Objective view on the directional bias of markets. Technical expertise bridges the complex relationships between value drivers, capital flows and price action. Partners are represented over the cross-section of financial marke ...

Financial Data and Key Metrics Changes - The company reported a 5% decline in third quarter sales to $984 million, primarily due to an 8.7% decrease in volumes, while pricing increased by 1% and acquisitions contributed 3% to sales [12][22] - Gross profit dollars decreased approximately 4% to $352 million, with a gross profit margin of 35.8%, which increased by 40 basis points compared to the prior year [12][22] - Adjusted operating income declined approximately 7% to $170 million, with an adjusted operating income margin of 17.3%, reflecting a 70 basis point benefit from incentive compensation adjustments [14][22] Business Line Data and Key Metrics Changes - Americas Welding sales decreased 4%, primarily due to an 8.6% decline in volumes, while price and acquisitions contributed approximately 5% to sales growth [17] - International Welding sales declined approximately 11% on 12% lower volumes, with a 9% adjusted EBIT margin reflecting the impact of lower volumes [18][19] - Harris Products Group saw a 4% increase in sales, driven by a 7% price increase, while volumes decreased by 3% [20] Market Data and Key Metrics Changes - The company experienced broad weakness across its customer base, particularly in heavy industries and automotive sectors, leading to a cautious posture among general industry customers [6][7] - OEM sales declined at double the rate of distribution channel sales, with distribution channel organic sales performance remaining steady year-over-year [7] - The company expects fourth quarter organic sales to decline in the high-single-digit percent range, reflecting continued market challenges [22] Company Strategy and Development Direction - The company is maintaining a balanced capital allocation strategy, investing in internal growth projects and acquisitions while returning $91 million in cash to shareholders [5][22] - Temporary and permanent cost savings actions are expected to generate $40 million to $50 million in annualized savings, with a focus on aligning the business to market conditions [8][9] - The company launched over 35 new products, the largest launch in five years, focusing on productivity and expanding presence in underpenetrated areas [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model and strategic initiatives, despite a challenging quarter, and expects to outperform in the next growth cycle [11][22] - The company anticipates continued pressure in the automotive sector, with delays in capital projects impacting automation portfolio sales into 2025 [7][32] - Management is focused on innovation and long-term profitable growth, while navigating current market conditions [9][10] Other Important Information - The company generated $199 million in cash flows from operations, resulting in a 134% cash conversion rate [21] - The effective tax rate for the third quarter was 23.6%, with an adjusted effective tax rate of 22.2% year-to-date [16][22] - The company announced its 29th consecutive annual dividend rate increase to $3 per share in 2025 [22] Q&A Session Summary Question: Can you provide details on October order rates across major product categories and markets? - Management expects fourth quarter organic sales to decline in the high single-digits, indicating a continuation of the dynamics seen in Q3 [25] Question: Can you clarify the split of cost actions specific to the automation strategy? - Management noted operational improvements in the automation business, tracking into the low teens on EBIT despite pressures from acquisitions [26] Question: How do you view price-cost neutrality heading into 2025? - The company aims to maintain a price-cost neutral posture, implementing pricing as inflationary trends arise [29] Question: What is the visibility for automation growth in the first half of next year? - Management indicated a low double-digit decline in automation organic sales, driven by delays in capital decision-making in the automotive sector [30] Question: How do you plan to navigate the challenges in the automotive sector? - The company remains confident in its long-term automation strategy and is focused on improving margin profiles while exploring acquisition opportunities [35] Question: Can you clarify the expected EBIT margin for the Americas segment? - The EBIT margin for the Americas segment is expected to be in the 18% to 19% range for the full year, with fourth quarter margins expected to reflect similar pressures as Q3 [42] Question: How is the company balancing inventory levels in a slowing market? - The company is ensuring sufficient inventory to meet customer demand while trimming working capital to free up cash [63] Question: Is there any concern about market share losses in the current environment? - Management does not see significant market share losses, attributing challenges more to the mix of business rather than broad losses [65]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 0-1402 LINCOLN ELECTRIC HOLDINGS, INC. (Exact name of registrant as specified in its charter ...

Core Insights - Lincoln Electric Holdings (LECO) reported revenue of $983.76 million for the quarter ended September 2024, a decrease of 4.8% year-over-year, with EPS at $2.14 compared to $2.40 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $970.1 million by 1.41%, while the EPS surpassed the consensus estimate of $2.05 by 4.39% [1] Revenue Performance - Net Sales for the Harris Products Group were $130.51 million, exceeding the average estimate of $124.76 million, reflecting a year-over-year increase of 3.6% [3] - Net Sales for International Welding were $216.22 million, slightly above the average estimate of $213.95 million, but down 10.7% year-over-year [3] - Net Sales for Americas Welding were $637.03 million, surpassing the estimated $626.40 million, representing a decline of 4.2% compared to the previous year [3] Total Sales Analysis - Total Sales for the Harris Products Group reached $133.66 million, exceeding the average estimate of $125.39 million, with a year-over-year increase of 4.2% [3] - Total Sales for International Welding were $223.60 million, above the average estimate of $215.39 million, but down 9.4% year-over-year [3] - Total Sales for Americas Welding were $667.87 million, compared to the average estimate of $652.23 million, indicating a decline of 3.8% year-over-year [3] Inter-segment Sales - Inter-segment sales for Americas Welding were $30.85 million, exceeding the average estimate of $29.89 million, with a year-over-year increase of 6.8% [3] - Inter-segment sales for International Welding were $7.37 million, surpassing the average estimate of $5.48 million, reflecting a significant year-over-year increase of 50.6% [3] - Inter-segment sales for the Harris Products Group were $3.16 million, compared to the average estimate of $2.45 million, representing a year-over-year increase of 37.2% [3] Adjusted EBIT - Adjusted EBIT for Americas Welding was $125.52 million, exceeding the average estimate of $121.58 million [3] - Adjusted EBIT for Corporate/Eliminations was $4.50 million, compared to the average estimate of -$3.03 million, indicating a positive year-over-year change [3] Stock Performance - Lincoln Electric shares have returned +2.7% over the past month, outperforming the Zacks S&P 500 composite's +1% change [4] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [4]

Financial Performance - Net sales for Q3 2024 were $984 million, a decrease of 4.8% compared to the prior year[1][2] - EPS for Q3 2024 was $1.77, down from $2.22 in the prior year, with adjusted EPS at $2.14 compared to $2.40[1][2] - For the nine months ended September 30, 2024, net income was $325.9 million, or $5.68 EPS, down from $388.6 million, or $6.67 EPS in the prior year[4][12] - Total sales for the nine months decreased 4.7% to $2.99 billion, reflecting a 6.1% decrease in organic sales[5][12] - Net income for Q3 2024 was $100,756, down 22.1% from $129,343 in Q3 2023[15] - Net income for the three months ended September 30, 2024, was $100,756, a decrease of 22% from $129,343 in the same period of 2023[17] - The net income for the nine months ended September 30, 2024, was $325,879 thousand, or 10.9% of total sales, compared to $388,605 thousand and 12.4% in the prior year[20] Operating Income - Operating income margin was 14.8%, with adjusted operating income margin at 17.3%[1][2] - Operating income for Q3 2024 was reported at $145,560, a decrease of 15.1% from $171,441 in Q3 2023[15] - Adjusted operating income for Q3 2024 was $169,756, compared to $183,367 in Q3 2023, reflecting a decline of 7.4%[15] Cash Flow and Dividends - Cash flows from operations reached $199 million, achieving a cash conversion rate of 134%[1] - The company returned $91 million to shareholders through dividends and share repurchases[1] - The Board declared a quarterly cash dividend of $0.75 per share, a 5.6% increase from the previous dividend[6] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $503,182, down from $545,880 in 2023, reflecting a decrease of approximately 7%[18] - Cash dividends paid per share increased to $2.13 for the nine months ended September 30, 2024, compared to $1.92 in 2023, marking an increase of approximately 11%[18] Assets and Liabilities - Total assets increased to $3.66 billion as of September 30, 2024, compared to $3.38 billion at the end of 2023[13] - Total debt increased to $1,262,609 as of September 30, 2024, up from $1,105,210 at the end of 2023, representing a rise of 14.2%[14] - Invested capital rose to $2,601,799 as of September 30, 2024, compared to $2,414,062 at the end of 2023, an increase of 7.8%[14] - Average operating working capital to net sales increased to 19.1% as of September 30, 2024, compared to 17.1% at the end of 2023[14] Capital Expenditures and Investments - The company reported a significant increase in capital expenditures, totaling $85,117 for the nine months ended September 30, 2024, compared to $66,459 in 2023, representing a 28% increase[18] - The acquisition of businesses net of cash acquired amounted to $252,746 for the nine months ended September 30, 2024, a substantial increase from $32,685 in the same period of 2023[18] - The net cash used by investing activities for the nine months ended September 30, 2024, was $335,357, compared to $101,109 in 2023, indicating a significant increase in investment activity[18] Segment Performance - Total sales for the Americas Welding segment for the nine months ended September 30, 2024, were $2,008,685 thousand, a decrease from $2,092,882 thousand in the same period of 2023[20] - The Harris Products Group reported net sales of $395,355 thousand for the nine months ended September 30, 2024, compared to $392,517 thousand in the same period of 2023[20] - The Americas Welding segment experienced a volume decline of $57,292 thousand for the three months ended September 30, 2024, contributing to an overall decrease in consolidated net sales[21] - The International Welding segment reported a net sales decrease of 10.7% for the three months ended September 30, 2024, with total sales of $216,224 thousand[21] - Americas Welding reported net sales of $2,000,839, a decrease of 7.3% compared to the previous period[22] - International Welding net sales were $747,829, reflecting a decline of 6.8%[22] - The Harris Products Group achieved net sales of $384,454, down 3.9% from the prior year[22] Market Trends and Projections - The projected net sales for 2024 is $2,986,639, indicating a potential recovery[22] - Volume change contributed to a decrease of $(211,444) in consolidated net sales[22] - Price changes positively impacted consolidated net sales by $19,872[22] - Foreign exchange effects negatively impacted consolidated net sales by $(2,828)[22]

Sometimes it feels like getting through a maze trying to find new investment opportunities Floresco Productions VAL S&P 500 (*SPX) Lovel % Change 8.64% Star 500 ( 31 x) X) Level % Change (*DJA) Level % Change Nasdaq Composite (*IXIC) Level % Change 5.65% 10.36% 4.00% 0.00% -4.00% Aug 6 Aug 8 Aug 10 Aug 12 Aug 14 Aug 16 Aug 18 Aug 20 Aug 22 Seeking AlphaQ Aug 25, 2024, 3:07 AM EDT Powered by YCHARTS Data by YCharts Just when it seems like the market is going to head lower it took off in the other direction a ...

For Immediate Release Chicago, IL – August 5, 2024 – Today, Zacks Equity Research discusses Stanley Black & Decker, Inc. (SWK) and Lincoln Electric Holdings, Inc. (LECO) . Industry: Manufacturing Tools Link: https://www.zacks.com/commentary/2315124/2-manufacturing-tools-stocks-to-watch-despite-industryheadwinds Weakness in the manufacturing sector, slowdown in new orders and lingering effects of supply chain issues have marred the outlook of the Zacks Manufacturing-Tools & Related Products industry. The sho ...

Lincoln Electric Holdings, Inc. (LECO) reported adjusted earnings of $2.34 per share in the second quarter of 2024, beating the Zacks Consensus Estimate of $2.30. The bottom line decreased 4.1% year over year. Including one-time items, the bottom line was $1.77 per share compared with $2.36 in the prior-year quarter. Total revenues fell 3.7% year over year to $1.02 billion. However, the top line marginally beat the Zacks Consensus Estimate of $1.01 billion. The decline was due to a 4.4% fall in organic sale ...