Linde plc (LIN - Free Report) reported adjusted earnings from continuing operations of $1.89 per share in fourth-quarter 2019, beating the Zacks Consensus Estimate of $1.84. Moreover, the bottom line improved from the year-ago figure of $1.51 per share.
The company’s revenues of $7,080 million improved from the year-ago level of $5,801 million and beat the Zacks Consensus Estimate of $6,947 million.
The strong quarterly earnings of the leading producer and distributer of industrial gases were supported by improved prices across Americas, Asia Pacific, Europe, Middle East & Africa.
Segmental Results
The company operates through four business segments — Americas, APAC (the Asia Pacific), EMEA (Europe, Middle East & Africa) and Engineering.
Pro forma sales from the Americas unit in the December-end quarter of 2019 were $2,737 million, up from $2,684 million in the year-ago comparable period. Moreover, the segment contributed $676 million to pro forma operating profit, mirroring an improvement from $609 million in fourth-quarter 2018. Higher prices and volume primarily contributed to the outperformance.
From the APAC unit, the company generated sales of $1,403 million, down from the year-ago quarter’s $1,447 million. The sales decline resulted from lower volume, following weaker economic conditions in the South Pacific. However, the segment contributed $299 million to operating profit in fourth-quarter 2019, up from $246 million in the prior-year period owing to higher prices.
Sales from the EMEA unit declined to $1,654 million from $1,704 million in the December-end quarter of 2018. However, the company generated operating profit of $353 million from the segment, higher than $296 million in the prior-year quarter. The results were aided by an uptick in prices, partially offset by lower volume owing to a slowdown in manufacturing activities.
The company’s pro forma sales from the Engineering business were $770 million, up from $716 million in the prior-year quarter. The segment’s profit also increased to $93 million from $77 million in fourth-quarter 2018, thanks to increased productivity and timely project executions.
Balance Sheet
As of Dec 31, 2019, Linde had cash and cash equivalents of $2,700 million. Long-term debt totaled $10,693 million. Its debt-to-capitalization ratio is 21.3%.
Guidance
The company expects adjusted earnings per share (EPS) of $8-$8.25 for 2020, suggesting a year-over-year improvement of 9-12%.
Zacks Rank & Stocks to Consider
Linde currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Pretium Resources, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kinross Gold is likely to see earnings growth of 32.3% in 2020.
Franco-Nevada is likely to see earnings growth of 28% in 2020.
Pretium Resources is likely to see earnings growth of 75% in 2020.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Linde plc (LIN - Free Report) reported adjusted earnings from continuing operations of $1.89 per share in fourth-quarter 2019, beating the Zacks Consensus Estimate of $1.84. Moreover, the bottom line improved from the year-ago figure of $1.51 per share.
The company’s revenues of $7,080 million improved from the year-ago level of $5,801 million and beat the Zacks Consensus Estimate of $6,947 million.
The strong quarterly earnings of the leading producer and distributer of industrial gases were supported by improved prices across Americas, Asia Pacific, Europe, Middle East & Africa.
Segmental Results
The company operates through four business segments — Americas, APAC (the Asia Pacific), EMEA (Europe, Middle East & Africa) and Engineering.
Pro forma sales from the Americas unit in the December-end quarter of 2019 were $2,737 million, up from $2,684 million in the year-ago comparable period. Moreover, the segment contributed $676 million to pro forma operating profit, mirroring an improvement from $609 million in fourth-quarter 2018. Higher prices and volume primarily contributed to the outperformance.
From the APAC unit, the company generated sales of $1,403 million, down from the year-ago quarter’s $1,447 million. The sales decline resulted from lower volume, following weaker economic conditions in the South Pacific. However, the segment contributed $299 million to operating profit in fourth-quarter 2019, up from $246 million in the prior-year period owing to higher prices.
Sales from the EMEA unit declined to $1,654 million from $1,704 million in the December-end quarter of 2018. However, the company generated operating profit of $353 million from the segment, higher than $296 million in the prior-year quarter. The results were aided by an uptick in prices, partially offset by lower volume owing to a slowdown in manufacturing activities.
The company’s pro forma sales from the Engineering business were $770 million, up from $716 million in the prior-year quarter. The segment’s profit also increased to $93 million from $77 million in fourth-quarter 2018, thanks to increased productivity and timely project executions.
Balance Sheet
As of Dec 31, 2019, Linde had cash and cash equivalents of $2,700 million. Long-term debt totaled $10,693 million. Its debt-to-capitalization ratio is 21.3%.
Guidance
The company expects adjusted earnings per share (EPS) of $8-$8.25 for 2020, suggesting a year-over-year improvement of 9-12%.
Zacks Rank & Stocks to Consider
Linde currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Pretium Resources, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kinross Gold is likely to see earnings growth of 32.3% in 2020.
Franco-Nevada is likely to see earnings growth of 28% in 2020.
Pretium Resources is likely to see earnings growth of 75% in 2020.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on KGC - FREE
Get the latest research report on FNV - FREE
Get the latest research report on LIN - FREE