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Is a Beat in the Offing for Linde (LIN) in Q4 Earnings?

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Linde plc (LIN - Free Report) is set to report fourth-quarter 2022 results on Feb 7, before the opening bell.

In the last reported quarter, Linde’s earnings of $3.10 per share beat the Zacks Consensus Estimate of $2.94, owing to increased prices and volumes across all end markets, except for healthcare.

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 4.7%, 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

Trend in Estimate Revision

The Zacks Consensus Estimate for its fourth-quarter earnings per share of $2.91 has witnessed one upward revision in the past 30 days. The estimated figure suggests an improvement of 5.1% from the prior-year reported number.

The consensus estimate for fourth-quarter revenues of $8.1 billion indicates a 2.5% decline from the year-ago reported figure.

Earnings Whispers

Our proven model predicts 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. This is just the case here, as elaborated below.

Earnings ESP: Linde’s Earnings ESP is +0.62%. 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 #2.

Factors to Consider

Industrial production in the United States increased in the December quarter from the year-ago period. Since Linde produces industrial gases used across numerous industries, the company is likely to have generated handsome profit from its Americas business unit. The Zacks Consensus Estimate for its fourth-quarter 2022 operating profit from the Americas unit is pegged at $946 million, suggesting an increase from $843 million in the fourth quarter of 2021.

Other Stocks to Consider

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

Celanese Corporation (CE - Free Report) has an Earnings ESP of +4.10% and is a Zacks #3 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

Celanese is scheduled to release fourth-quarter results on Feb 23. The Zacks Consensus Estimate for CE’s earnings is pegged at $1.56 per share.

Albemarle Corporation (ALB - Free Report) has an Earnings ESP of +7.16% and a Zacks Rank of 3.

Albemarle is scheduled to report fourth-quarter results on Feb 15. The Zacks Consensus Estimate for its earnings is pegged at $7.89 per share, suggesting a massive year-over-year improvement.

Huntsman Corporation (HUN - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #3.

Huntsman is scheduled to release fourth-quarter earnings on Feb 21. The Zacks Consensus Estimate for its earnings is pegged at 11 cents per share.

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

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