Shares of Lincoln Electric (NASDAQ: LECO) plunged 7.60% in pre-market trading on Wednesday following the release of its first-quarter 2025 financial results. The welding products manufacturer reported mixed results, with earnings falling short of analyst expectations despite beating revenue estimates.

Lincoln Electric reported adjusted earnings per share (EPS) of $2.16 for Q1 2025, missing the analyst consensus estimate of $2.23 by 3.14%. This represents a decrease from the $2.23 per share earned in the same period last year. The company's adjusted net income came in at $121.9 million, below the estimated $125.2 million, while adjusted operating income of $169.4 million also fell short of the expected $172.2 million.

Despite the earnings miss, Lincoln Electric's quarterly sales reached $1.00 billion, surpassing the analyst consensus estimate of $976.65 million by 2.80%. This marks a 2.32% increase from the $981.20 million in sales reported for the same period last year. However, the revenue beat was not enough to offset investor concerns about the company's profitability, leading to the significant stock price drop. The market reaction suggests that investors are focusing on the earnings miss and potential challenges in maintaining profit margins in the current economic environment.