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]

October 31, 2024 LINCOLN ELECTRIC HOLDINGS, INC. Q3 2024 Earnings Safe Harbor and Regulation G Disclosures Forward-Looking Statements: Statements made during this presentation which are not historical facts may be considered forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied. Forward-looking statements generally can be identified by the use of words such as "may," "will," "expec ...

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]

Lincoln Electric Holdings (LECO) came out with quarterly earnings of $2.14 per share, beating the Zacks Consensus Estimate of $2.05 per share. This compares to earnings of $2.40 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.39%. A quarter ago, it was expected that this manufacturer of specialized welding products and other equipment would post earnings of $2.30 per share when it actually produced earnings of $2.34, deliver ...

Exhibit 99.1 Investor Relations: Amanda Butler (216) 383-2534 Amanda_Butler@lincolnelectric.com LINCOLN ELECTRIC REPORTS THIRD QUARTER 2024 RESULTS | --- | --- | |-------|------------------------------------------------------------------------------------------------------| | | Third Quarter 2024 Highlights | | | ◾ Net sales of $984 million | | | ◾ Operating income margin of 14.8%; Adjusted operating income margin of 17.3% | | | ◾ EPS of $1.77; Adjusted EPS of $2.14 | | | ◾ Cash flows from operations of $19 ...

Core Viewpoint - Lincoln Electric is experiencing short-term challenges, particularly in automation and the EV sector, but maintains a strong long-term outlook due to favorable industry trends and solid margins [1][2]. Company Overview - Lincoln Electric has a rich history as a quality manufacturer of welding and related equipment, primarily competing in North America against companies like Illinois Tool Works and ESAB [3]. - The demand for Lincoln's products is driven by labor shortages, infrastructure investments, and the need for renewable energy solutions, serving various sectors including general fabrication, energy, heavy industries, and construction [3]. Financial Performance - In February 2023, Lincoln Electric reported a full-year sales increase of 11% to $4.19 billion, with operating margins rising by 80 basis points to 17.1% [4]. - Operating profits reached $717 million, resulting in after-tax earnings of $545 million, equating to earnings of $9.37 per share [4]. - The company has a modest net debt of $712 million, with a leverage ratio of less than 1 times [4]. Recent Developments - Following a peak share price of $260 in March, Lincoln Electric's stock has declined to $175, attributed to a slowdown in business and a nearly 6% drop in first-quarter sales [5]. - Despite the decline, adjusted operating profit margins improved to 17.5% in the first quarter, and adjusted earnings increased to $2.23 per share [5]. - The company announced the acquisition of Vanair Manufacturing, which is expected to contribute $100 million in annual sales and add 2-3% to profitable sales [5]. Current Challenges and Outlook - The current softness in sales is linked to a pause in capital spending for automation and OEMs rebalancing their powertrain platforms [6]. - Recent acquisitions are projected to add approximately $0.15 per share to annual earnings, which is crucial given the current market conditions [6]. - Despite recent revenue declines, Lincoln Electric's long-term positioning remains strong, making the stock increasingly appealing at current levels [6].

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 ...