Lincoln Electric Earnings: Sales Decline Consistent With Revised Full-Year Outlook From May

Narrow-moat-rated Lincoln Electric’s second-quarter adjusted EPS decreased by 4% year over year, from $2.44 to $2.34, as the firm faced macroeconomic headwinds and slower capital spending in the automotive sector. While we’ve left our long-term forecast largely unchanged, we’ve slightly raised our fair value estimate to $184 per share from $182 due to time value of money. We see Lincoln Electric as modestly overvalued at current levels, and we’d prefer to wait for a more attractive entry point, especially since a challenging macroeconomic environment could weigh on near-term revenue growth.