Linde plc (LIN - Free Report) announced second-quarter 2021 adjusted earnings from continuing operations of $2.70 per share, surpassing the Zacks Consensus Estimate of $2.56 and improving from the year-ago profit of $1.90.
Total revenues of $7,584 million beat the Zacks Consensus Estimate of $7,392 million and improved from the year-ago quarter’s $6,377 million.
The strong results were driven by increased demand from end markets and project start-ups that led to higher volumes and prices.
Dividend & Stock Repurchases
Through the June quarter, the leading producer of industrial gases has returned to shareholders a capital of $1,748 million that comprises both dividends and stock repurchases.
Segment Highlights
Operating profit in the Americas segment was up 40% year over year to $871 million on higher pricing and volumes. The increase in prices and volumes was aided by strong demand from most of the project start-ups and end-markets.
Profit in the EMEA segment increased 61% year over year to $487 million, thanks to increased volumes and pricing across all end markets.
Profit in the APAC segment increased 32.3% year over year to $389 million. The upside can be attributed to higher demand from project start-ups and end markets that aided pricing and volumes.
Operating profit at the Engineering segment fell 21.7% year over year to $108 million.
Backlogs
At the end of the June quarter, the company’s total backlog was recorded at $7.5 billion. The company has a sale-of-gas backlog of $3.4 billion and sale-of-plant backlog of $4.1 billion.
Capital Investment & Balance Sheet
Linde reported capital expenditure for the June quarter at $744 million. The company ended the second quarter with cash and cash equivalents of around $3.1 billion. Long-term debt was $9.9 billion, representing debt to capitalization of 22.4%.
Guidance
For the September quarter, the company projects adjusted diluted earnings per share from continuing operations in the band of $2.6 to $2.7. For 2021, the firm is expecting adjusted diluted earnings per share from continuing operations in the range of $10.1 to $10.3. This represents upward revisions from the prior projected 2021 adjusted diluted earnings per share from continuing operations of $9.6 to $9.8.
For supporting maintenance and growth projects, the company has set a capital budget for this year of $3 billion to $3.4 billion.
Zacks Rank & Other Stocks to Consider
The company currently has a Zacks Rank #2 (Buy). Other prospective players in the basic material space include AvientCorporation (AVNT - Free Report) , Dow Inc. (DOW - Free Report) and Cabot Corporation (CBT - Free Report) . While Avient carries a Zacks Rank #2, Dow and Cabot sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Avient has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Dow is expected to witness earnings growth of 403% in 2021.
Cabot is likely to see earnings growth of 137.5% in fiscal 2021.
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Linde plc (LIN - Free Report) announced second-quarter 2021 adjusted earnings from continuing operations of $2.70 per share, surpassing the Zacks Consensus Estimate of $2.56 and improving from the year-ago profit of $1.90.
Total revenues of $7,584 million beat the Zacks Consensus Estimate of $7,392 million and improved from the year-ago quarter’s $6,377 million.
The strong results were driven by increased demand from end markets and project start-ups that led to higher volumes and prices.
Dividend & Stock Repurchases
Through the June quarter, the leading producer of industrial gases has returned to shareholders a capital of $1,748 million that comprises both dividends and stock repurchases.
Segment Highlights
Operating profit in the Americas segment was up 40% year over year to $871 million on higher pricing and volumes. The increase in prices and volumes was aided by strong demand from most of the project start-ups and end-markets.
Profit in the EMEA segment increased 61% year over year to $487 million, thanks to increased volumes and pricing across all end markets.
Profit in the APAC segment increased 32.3% year over year to $389 million. The upside can be attributed to higher demand from project start-ups and end markets that aided pricing and volumes.
Operating profit at the Engineering segment fell 21.7% year over year to $108 million.
Backlogs
At the end of the June quarter, the company’s total backlog was recorded at $7.5 billion. The company has a sale-of-gas backlog of $3.4 billion and sale-of-plant backlog of $4.1 billion.
Capital Investment & Balance Sheet
Linde reported capital expenditure for the June quarter at $744 million. The company ended the second quarter with cash and cash equivalents of around $3.1 billion. Long-term debt was $9.9 billion, representing debt to capitalization of 22.4%.
Guidance
For the September quarter, the company projects adjusted diluted earnings per share from continuing operations in the band of $2.6 to $2.7. For 2021, the firm is expecting adjusted diluted earnings per share from continuing operations in the range of $10.1 to $10.3. This represents upward revisions from the prior projected 2021 adjusted diluted earnings per share from continuing operations of $9.6 to $9.8.
For supporting maintenance and growth projects, the company has set a capital budget for this year of $3 billion to $3.4 billion.
Zacks Rank & Other Stocks to Consider
The company currently has a Zacks Rank #2 (Buy). Other prospective players in the basic material space include AvientCorporation (AVNT - Free Report) , Dow Inc. (DOW - Free Report) and Cabot Corporation (CBT - Free Report) . While Avient carries a Zacks Rank #2, Dow and Cabot sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Avient has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Dow is expected to witness earnings growth of 403% in 2021.
Cabot is likely to see earnings growth of 137.5% in fiscal 2021.
Free Report – The Bitcoin Profit Phenomenon
Zacks Investment Research has released a Special Report to help you pursue massive profits from the world’s first and largest decentralized form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%.
Zacks predicts another significant surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.
Download Now – Today It’s FREE >>
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