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Linde (LIN) Gears Up for Q2 Earnings: What's in the Cards?

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Linde plc (LIN - Free Report) is set to report second-quarter 2022 results on Jul 28, before the opening bell.

In the last reported quarter, Linde’s earnings of $2.93 per share beat the Zacks Consensus Estimate of $2.78, owing to increased prices and volumes from electronics, energy and chemicals end markets.

The leading global industrial gases and engineering company beat the Zacks Consensus Estimate for earnings in each of the prior four quarters, delivering an earnings surprise of 4.1%, on average. This is depicted in the graph below:

Linde plc Price and EPS Surprise

Linde plc Price and EPS Surprise

Linde plc price-eps-surprise | Linde plc Quote

Let’s see how things have shaped up prior to this announcement.

Trend in Estimate Revision

The Zacks Consensus Estimate for its second-quarter earnings per share of $2.98 has witnessed no revisions in the past seven days. The estimated figure suggests an improvement of 10.4% from the prior-year reported number.

The consensus estimate for second-quarter revenues of $8.4 billion indicates a 10.5% improvement from the year-ago reported figure.

Factors to Consider

Industrial production in the United States increased for the June quarter of 2022 compared to the year-ago quarter. This was driven by economic reopening, thanks to the rollout of coronavirus vaccines on a larger scale. Since Linde produces industrial gases used across numerous industries, the company is likely to have generated revenues from its Americas business unit. The Zacks Consensus Estimate for its second-quarter 2022 sales from the Americas unit is pegged at $3,372 million, suggesting an increase from $3,020 million in the second quarter of 2021.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Linde this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: Linde’s Earnings ESP is -0.27%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Linde currently carries a Zacks Rank #3.

Stocks to Consider

Here are a few firms that you may want to consider as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

MP Materials Corp. (MP - Free Report) has an Earnings ESP of +4.23% and is a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

MP Materials is scheduled to release second-quarter results on Aug 4. The Zacks Consensus Estimate for MP’s earnings is pegged at 36 cents per share, suggesting an improvement of 140% from the prior-year reported figure.

Albemarle Corporation (ALB - Free Report) has an Earnings ESP of +11.87% and a Zacks Rank of 2.

Albemarle is scheduled to report second-quarter results on Aug 3. The Zacks Consensus Estimate for its earnings is pegged at $2.94 per unit, suggesting an improvement of 230.3% from the prior-year reported figure.

Tronox Holdings plc (TROX - Free Report) has an Earnings ESP of +3.57% and a Zacks Rank #3.

Tronox Holdings is scheduled to release second-quarter earnings on Jul 27. The Zacks Consensus Estimate for its earnings is pegged at 84 cents per share, suggesting a year-over-year increase of 37.7%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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