Lincoln Electric Earnings: Full-Year Outlook Maintained Despite Slow Start to the Year

Narrow-moat-rated Lincoln Electric reported mixed first-quarter results, as its revenue of $981 million fell $60 million short of the FactSet consensus estimate, but adjusted EPS of $2.23 beat the consensus by $0.06 thanks to strong margins in Americas welding and the Harris Products Group. We’ve trimmed our fair value estimate to $187 from $190, which reflects our slightly more conservative near-term organic revenue growth projections, partially offset by time value of money. We view the name as modestly overvalued at current levels.