As you might know, Lincoln Electric Holdings, Inc. (NASDAQ:LECO) recently reported its quarterly numbers. It was a pretty mixed result, with revenues beating expectations to hit US$1.0b. Statutory earnings fell 5.5% short of analyst forecasts, reaching US$2.10 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following last week's earnings report, Lincoln Electric Holdings' ten analysts are forecasting 2025 revenues to be US$4.05b, approximately in line with the last 12 months. Per-share earnings are expected to increase 7.7% to US$8.89. Before this earnings report, the analysts had been forecasting revenues of US$4.02b and earnings per share (EPS) of US$9.21 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

See our latest analysis for Lincoln Electric Holdings

It might be a surprise to learn that the consensus price target was broadly unchanged at US$215, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Lincoln Electric Holdings, with the most bullish analyst valuing it at US$250 and the most bearish at US$179 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Lincoln Electric Holdings shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Lincoln Electric Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.7% growth on an annualised basis. This is compared to a historical growth rate of 9.6% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that Lincoln Electric Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Lincoln Electric Holdings. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Lincoln Electric Holdings' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Lincoln Electric Holdings going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Lincoln Electric Holdings that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.