Lincoln Electric (LECO) Q2 Earnings Beat, Revenues Dip Y/Y
In This Article:
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 sales, partially offset by a 1.2% benefit from acquisitions.
Lincoln Electric Holdings, Inc. Price, Consensus and EPS Surprise
Lincoln Electric Holdings, Inc. price-consensus-eps-surprise-chart | Lincoln Electric Holdings, Inc. Quote
Costs & Margins
The cost of goods sold fell 7.2% to $638 million from the prior-year quarter. The gross profit increased 2.8% to $384 million. The gross margin was 37.6% compared with the year-ago quarter’s 35.2%.
Selling, general and administrative expenses increased 8.2% year over year to $208.5 million. Adjusted operating profit decreased 3.6% to $178 million in the quarter. The adjusted operating margin was 17.4% in the reported quarter, flat year over year.
Segmental Performance
Americas Welding: The segment’s total sales decreased to $687 million from $708 million in the year-earlier quarter. The reported figure lagged our estimated revenues of $714 million. Adjusted operating income totaled $137 million compared with $140 million in the prior-year quarter. We estimated an adjusted operating income of $131 million.
International Welding: This segment’s revenues fell 5.4% year over year to $248 million in the reported quarter. We projected quarterly revenues of $251 million. The segment reported an adjusted operating profit of $26 million compared with the year-ago quarter’s $34 million. The reported figure missed our estimate of $29 million.
The Harris Products Group: The segment’s second-quarter total sales amounted to around $137 million, reflecting a year-over-year rise of 3.2%. The figure beat our estimate of $133 million. Adjusted operating profit was $25 million compared with the prior-year quarter’s $20 million. Our prediction for the segment’s adjusted income was $22 million.
Financial Update
Lincoln Electric had cash and cash equivalents of around $223 million at the end of the second quarter of 2024 compared with $394 million at the 2023 end. The company generated $171 million in cash flow from operations in the quarter under review compared with $199 million in the year-ago quarter. LECO returned $91 million to shareholders via dividends and share repurchases throughout the quarter.