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 +0.09% change in stock price 10 days leading up to the earnings, and a +2.00% change 10 days following the report. On the earnings day itself, the stock moves by -0.33%. 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
983.76M
-4.79%
-3.71%
Gross Margin
36.13%
0.75%
-3.86%
Operating Margin
17.51%
2.40%
3.73%
Net Margin
10.24%
-18.21%
2.91%
EPS
1.77
-20.27%
0.00%
No Data Available
LECO Earnings Analysis
Lincoln Electric Holdings Inc Corporation (LECO.O) Earnings Conference Call
Positive
Cash Flow Performance: 1. Strong Cash Generation: Lincoln Electric generated $199 million in cash flows from operations in Q3 2024, resulting in a remarkable 134% cash conversion rate.
Gross Profit Margin Improvement: 2. Increased Gross Profit Margin: The company achieved a gross profit margin of 35.8%, which is an increase of 40 basis points compared to the prior year, driven by effective cost management and operational efficiencies.
Shareholder Capital Return: 3. Significant Shareholder Returns: In Q3 2024, Lincoln Electric returned $91 million to shareholders through dividends and share repurchases, demonstrating a commitment to returning capital even in a challenging market.
New Product Launch Success: 4. Successful New Product Launches: The company launched over 35 new products at a recent industry trade show, marking its largest product launch in the last five years, which is expected to drive future growth.
Return on Invested Capital: 5. Strong Return on Invested Capital (ROIC): Lincoln Electric reported a robust ROIC of 21.4%, reinforcing its disciplined capital stewardship and effective management of resources.
Negative
Organic Sales Decline: 1. Decline in Organic Sales: Organic sales decreased by 8% in Q3 2024, reflecting broad weakness across the customer base and impacting all product areas.
Operating Income Decline: 2. Significant Drop in Operating Income: Reported operating income fell by 15%, or $26 million, to $146 million, primarily due to $24 million in special item charges.
Rising Interest Expenses: 3. Increased Interest Expense: Interest expense rose by 11% to $12 million, attributed to $150 million of debt issued in August 2024.
International Welding Sales Decline: 4. Weak Performance in International Welding: International Welding sales dropped approximately 11% on 12% lower volumes, with a 9% adjusted EBIT margin reflecting the impact of lower volumes.
Sales Decline Forecast: 5. High Single-Digit Sales Decline Expected: The company anticipates a high-single-digit decline in organic sales for Q4 2024, indicating continued market challenges.
LECO FAQs
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LECO Earning Call Sentiment
Lincoln Electric Holdings, Inc. (LECO) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
LECO.O
0.92%Positive
The earnings call summary reveals a mixed financial performance with a decline in sales and operating income, despite some positive aspects like increased dividends and share repurchases. The Q&A section highlights concerns about organic sales decline, automation business challenges, and vague management responses, adding uncertainty. The anticipated organic sales decline in Q4 and weak guidance for 2024 further reinforce a negative sentiment. Considering these factors, along with the absence of a market cap, the stock price is likely to experience a negative movement between -2% to -8% over the next two weeks.
