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Linde (LIN) Q2 Earnings & Revenues Beat on Higher Pricing

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Linde plc (LIN - Free Report) reported second-quarter 2022 adjusted earnings from continuing operations of $3.10 per share, surpassing the Zacks Consensus Estimate of $2.98 and improving from the year-ago profit of $2.70.

Total revenues of $8,457 million beat the Zacks Consensus Estimate of $8,380 million and improved from the year-ago quarter’s $7,584 million.

The strong results were driven by increased prices and volumes from electronics, energy and chemicals end markets.

Linde plc Price, Consensus and EPS Surprise

Linde plc Price, Consensus and EPS Surprise

Linde plc price-consensus-eps-surprise-chart | Linde plc Quote

Segment Highlights

Operating profit of Linde in the Americas segment was up 4.5% year over year to $910 million on higher pricing and volumes, thanks to increased prices and volumes aided by manufacturing, chemicals and energy end market.

Linde’s profit in the EMEA segment increased 10% year over year to $536 million, thanks to a spike in pricing.

Profit in the APAC segment increased 9.5% year over year to $426 million on an uptick in prices and volumes, aided by strong electronics, energy and chemicals end markets.

Operating profit in the Engineering segment decreased to $105 million from the prior year’s $108 million.

Backlogs

At the end of the June quarter, the company’s high-quality backlog was recorded at roughly $6.5 billion, comprising a sale-of-gas backlog of $3.6 billion.

Capital Investment & Balance Sheet

Linde reported capital expenditure for the June quarter at $826 million. The company ended the quarter with cash and cash equivalents of $3.7 billion. Linde’s long-term debt was $11.2 billion.

Guidance

For the September quarter, Linde projects adjusted earnings per share in the band of $2.85 to $2.95. For 2022, it expects adjusted earnings per share in the band of $11.73 to $11.93.

Zacks Rank & Stocks to Consider

Linde currently carries a Zacks Rank #3 (Hold). Better-ranked stocks that investors could look into include Cabot Corporation (CBT - Free Report) , Albemarle Corporation (ALB - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) . While Cabot sports a Zacks Rank #1 (Strong Buy), Albemarle and Kronos Worldwide carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot is a well-known name in the basic material space since it is specialty chemicals and performance materials company. It is primarily involved in providing carbon black, specialty carbons, engineered elastomer composites and inkjet colorants.

For fiscal 2022, CBT has witnessed upward earnings estimate revisions in the past 60 days.

Albemarle is also a well-known name in the same space as specialty chemicals company. In lithium and lithium derivatives, it is a leading player in the industry.

In the past 60 days, ALB has witnessed upward earnings estimate revisions for 2022.

In the international market, Kronos Worldwide is a leading producer of titanium dioxide products. For this year, KRO is likely to see earnings growth of 110.2%.

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