Lincoln Electric Q2 sales rise 12%, beat estimates

Overview

• Industrial machinery maker's Q2 sales rose 12% yr/yr, beating analyst expectations

• Adjusted EPS for Q2 increased to $2.93, beating analyst expectations

• Company cites improved demand and capital spending in Americas and Asia Pacific

Outlook

• Company says improved demand and capital spending in Americas and Asia Pacific support outlook

• Lincoln Electric says strong execution of RISE Strategy positions it well for future returns

Result Drivers

• ORGANIC SALES GROWTH - Co said Q2 sales rose 10.1% organically, with strongest contributions from Americas Welding and The Harris Products Group

• IMPROVED DEMAND AND CAPITAL SPENDING - Co cited improved demand and capital spending in the Americas and Asia Pacific as key drivers, per CEO Steven B. Hedlund

• ACQUISITIONS AND FX - Acquisitions contributed 1.5% and favorable foreign exchange 0.4% to Q2 sales growth

Company press release: ID:nBw7F1Dwsa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery equipment peer group is "buy."

• Wall Street's median 12-month price target for Lincoln Electric Holdings Inc is $310.00, about 20.2% above its July 29 closing price of $257.99

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads

• July 28 - Illinois Tool Works raises annual profit forecast on strong industrial demand

• July 30 - Equipment maker Terex Q2 sales beat estimates, lifts FY outlook

• July 29 - IDEX beats Q2 sales, adjusted EPS estimates, raises FY outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)