Lincoln Electric Holdings, Inc. (NASDAQ:LECO) delivered adjusted earnings of $1.17 per share in first-quarter 2019, up 6.4% year over year. The reported figure, however, missed the Zacks Consensus Estimate of $1.23. Earnings growth was driven by favorable mix and the company’s price management efforts to mitigate inflation and lower volumes.
Including one-time items, earnings in the reported quarter came in at $1.12 compared with 92 cents recorded in the prior-year quarter.
Total revenues marginally improved to $759.2 million compared to $757.7 million posted in the year-ago quarter. Organic sales growth was 0.9% in the reported quarter. Sales missed the Zacks Consensus Estimate of $767 million.
Lincoln Electric Holdings, Inc. Price, Consensus and EPS Surprise
Lincoln Electric Holdings, Inc. Price, Consensus and EPS Surprise | Lincoln Electric Holdings, Inc. Quote
Costs and Margins
Cost of goods sold edged down to $500.7 million from $501.1 million recorded in the prior-year quarter. Gross profit inched up 0.7% year over year to $258.4 million. Gross margin came in at 34.0% compared with the prior-year quarter’s 33.9%.
Selling, general and administrative expenses slipped 0.5% to $160.4 million from the year-earlier quarter. Adjusted operating profit improved 1.6% year over year to $98.8 million in the reported quarter. Operating margin came in at 13.0% compared with 12.8% witnessed in the year-ago quarter.
Financial Update
Lincoln Electric had cash and cash equivalents of $267 million at the end of the first quarter compared with $369 million at the end of the prior-year quarter. The company recorded cash flow from operations of $25.9 million in the January-March quarter compared with $43.8 million witnessed in the year-earlier period.
During the first quarter, Lincoln Electric returned $106 million to shareholders through dividend and share repurchases.
Price Performance
Lincoln Electric’s shares have gained around 4.2% over the past year, outperforming the industry’s growth of 2.3%.
Zacks Rank and Stocks to Consider
Lincoln Electric currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the Industrial Products sector are DMC Global Inc. (NASDAQ:BOOM) , Lawson Products, Inc. (NASDAQ:LAWS) and DXP Enterprises, Inc. (NASDAQ:DXPE) , each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DMC Global has an estimated earnings growth rate of 77.3% for the ongoing year. The company’s shares have soared 111.8%, in the past year.
Lawson Products has an impressive expected earnings growth rate of 102.5% for the current year. The stock has appreciated 37.1% in a year’s time.
DXP Enterprises has a projected earnings growth rate of 21.6% for 2019. The company’s shares have gained 22.5%, over the past year.
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Lincoln Electric Holdings, Inc. (LECO): Free Stock Analysis Report
DXP Enterprises, Inc. (DXPE): Free Stock Analysis Report
DMC Global Inc. (BOOM): Free Stock Analysis Report
Lawson Products, Inc. (LAWS): Free Stock Analysis Report
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