ESAB Corp

ESAB: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$44.00	Xqfbk	Hxxvfjzw

ESAB Earnings: Full-Year Guidance Raised on Improved Margins

Krzysztof Smalec

May 1, 2024

Narrow-moat-rated ESAB posted solid first-quarter results, featuring a 9% year-over-year increase in adjusted EBITDA. Management raised its guidance for full-year 2024 and now expects adjusted EPS of $4.75 to $4.95 (up from $4.65 to $4.85), which reflects higher margins as well as a lower interest expense. We've raised our fair value estimate to $93 from $90 due to our slightly more optimistic operating margin assumptions and time value of money.

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