1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
Narrow-moat rated Lincoln Electric posted strong second-quarter results, as its sales of $826 million and adjusted EPS of $1.67 both easily surpassed FactSet consensus estimates of $790 million and $1.48. We are increasing our fair value estimate for Lincoln Electric to $124 from $115, which reflects the firm’s outperformance, an improved near-term outlook, and our more optimistic operating margin projections.
Lincoln Electric is a leading manufacturer of welding, cutting, and brazing products. The firm’s portfolio of products includes arc-welding solutions, plasma and oxy-fuel cutting systems, and brazing and soldering alloys, as well as automation solutions. Lincoln Electric serves clients in the general fabrication, heavy industries, automotive, construction, shipbuilding, energy and process industries, among other end markets. Based in Cleveland, Ohio, Lincoln Electric has operations in 19 countries and has 11,000 employees worldwide. The company generated roughly $2.7 billion in sales and $328 million in adjusted operating income in 2020.
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