LECO Earnings Prediction
The chart below shows how LECO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LECO sees a -0.55% change in stock price 10 days leading up to the earnings, and a +1.47% change 10 days following the report. On the earnings day itself, the stock moves by +0.72%. This data can give you a slight idea of what to expect for the next quarter's release.
LECO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.02B
-3.45%
3.89%
Gross Margin
36.22%
3.34%
0.25%
Operating Margin
17.42%
-4.50%
-0.85%
Net Margin
13.72%
-7.30%
33.98%
EPS
2.47
-8.52%
39.55%
No Data Available
LECO Earnings Analysis
Lincoln Electric Holdings Inc Corporation (LECO.O) Earnings Conference Call
Positive
Strong Net Sales Performance: Achieved $4 billion in net sales, demonstrating resilience despite challenging demand trends.
Automation Sales Progress: Automation portfolio sales reached $911 million, on track to meet the $1 billion target for 2025.
Strong Profitability Performance: Record profitability with a 17.6% adjusted operating income margin, reflecting strong execution of strategic initiatives.
Record Adjusted EPS Achievement: Achieved second highest adjusted earnings per share at $9.29, with over 90% cash conversion.
Shareholder Returns Increase: Returned $264 million to shareholders through dividends and share repurchases, marking a 23% increase in returns to shareholders.
Negative
Sales Decline Analysis: Fourth quarter sales declined 3% to $1,022,000,000 primarily due to an 8.5% decrease in volumes, indicating a significant drop in demand across key markets.
Operating Income Decline: Reported operating income fell 13% to $177,000,000, primarily driven by lower sales and a $5,000,000 rationalization charge, reflecting ongoing challenges in the business environment.
International Welding Sales Decline: International Welding sales decreased approximately 17% due to lower volumes, particularly in Europe and Asia Pacific, highlighting persistent industrial weakness in these regions.
Automation Investment Decline: The automation business experienced a mid-teens decline in capital investment, indicating reduced customer spending and caution in the market, which could impact future growth prospects.
Operating Income Margin Challenges: Despite achieving a record adjusted operating income margin of 18.2%, the overall sales decline and challenging market conditions suggest potential difficulties in sustaining this performance moving forward.
LECO FAQs
How does LECO typically perform around its earnings report dates?
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LECO Earning Call Sentiment
Earnings call transcript: Lincoln Electric Q4 2024 beats EPS forecast, stock surges
LECO.O
3.01%Positive
The earnings call presents a mixed picture. Financial performance shows a decline in net sales and operating income, but there are positive aspects like increased gross profit margin and record adjusted earnings per share. The Q&A reveals some uncertainties, such as pressure on volumes and unclear guidance on segment sales. However, shareholder returns are strong, with increased dividends and share repurchases. Overall, the sentiment is balanced with both positive and negative elements, leading to a neutral prediction for stock price movement.
