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A Preview Of Lincoln Electric Holdings's Earnings

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Lincoln Electric Holdings (NASDAQ:LECO) announces its next round of earnings this Friday, February 12. Here is Benzinga's everything-that-matters guide for this Friday's Q4 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Lincoln Electric Holdings EPS will likely be near $1.06 while revenue will be around $685.95 million, according to analysts. In the same quarter last year, Lincoln Electric Holdings reported earnings per share of $1.15 on sales of $736.31 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 7.83% decline in the company's EPS figure. Revenue would have fallen 6.84% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.78 0.34 1.01 1.12
EPS Actual 1.10 0.80 1 1.15
Revenue Estimate 611.60 M 549.36 M 712.10 M 735.58 M
Revenue Actual 668.89 M 590.73 M 702.00 M 736.31 M

Stock Performance

Shares of Lincoln Electric Holdings were trading at $116.69 as of February 10. Over the last 52-week period, shares are up 26.13%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Lincoln Electric Holdings is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings