Lincoln Electric Q1 sales, profit top estimates on acquisitions, forex, N.America activity

Overview

• Industrial machinery maker's Q1 net sales rose 12%, beating analyst expectations

• Adjusted EPS for Q1 rose to $2.50, beating analyst expectations

• Company cites disciplined cost management and improving industrial activity in the Americas

Outlook

• Company did not provide specific financial guidance for the current quarter or full year

Result Drivers

• ORGANIC SALES GROWTH - Co said Q1 net sales rose 7.8% organically, with additional gains from acquisitions and favorable foreign exchange

• IMPROVING INDUSTRIAL ACTIVITY - Co cited improving industrial activity in the Americas as a key driver of performance

• DISCIPLINED COST MANAGEMENT - Management attributed results in part to disciplined cost management

Company press release: ID:nBw1HvhYda

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "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 $280.00, about 8.7% above its April 29 closing price of $257.51

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 22 three months ago

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