NORTH BETHESDA, Md. - ESAB Corporation (NYSE: ESAB) reported second-quarter earnings that beat analyst estimates, but shares fell 1.5% as the company lowered its full-year revenue guidance.
The industrial equipment maker posted adjusted earnings per share of $1.32, surpassing the $1.27 expected by analysts. Revenue came in at $707.1 million, also topping the consensus estimate of $686.9 million.
However, ESAB reduced its 2024 revenue forecast to $2.62 billion from its previous outlook of $2.66-$2.71 billion, citing currency headwinds and flat organic growth. The new guidance falls short of Wall Street's $2.69 billion projection.
"The ESAB team continues to execute well in a challenging business environment," said CEO Shyam P. Kambeyanda. "We are benefiting from our exposure to high-growth markets, such as India and the Middle East, as well as our strategy to improve our mix and focus on less cyclical end markets."
The company maintained its full-year adjusted EPS guidance of $4.75-$4.95, in line with analyst expectations of $4.91.
ESAB reported core organic sales growth of 0.6% in the quarter. Core adjusted EBITDA rose 6% to $134 million, with margins expanding 150 basis points to 20.1%.
The company completed its acquisition of Linde (NYSE:LIN) Bangladesh's welding business during the quarter, which it said strengthens its position in Asia.
Despite the lowered revenue outlook, ESAB emphasized its continued focus on margin expansion and cash flow generation through its ESAB Business Excellence (EBX) program.
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