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Linde (LIN) Beats Q4 Earnings Estimates, Hikes Capex Outlook
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Linde plc (LIN - Free Report) has reported fourth-quarter 2022 adjusted earnings from continuing operations of $3.16 per share, surpassing the Zacks Consensus Estimate of $2.91. The bottom line improved from the year-ago quarter’s profit of $2.77.
Total quarterly revenues of $7,899 million missed the Zacks Consensus Estimate of $8,087 million. The top line also declined from the year-ago quarter’s $8,298 million.
Strong quarterly earnings were driven by increased prices and volumes across all end markets.
The operating profit of Linde in the Americas segment was up 12% year over year to $944 million on higher pricing and stable volumes, aided by all end markets.
Linde’s profit in the EMEA segment increased 7.2% year over year to $509 million due to higher pricing.
Profit in the APAC segment increased 9.5% year over year to $416 million on an uptick in prices and volumes, primarily in the electronics, chemicals and energy end markets, including project start-ups.
Operating profit in the Engineering segment increased to $157 million from the prior year’s $150 million.
Backlogs
At the end of the fourth quarter, the company’s high-quality backlog was $9 billion, comprising a sale-of-gas backlog of $5.7 billion.
Capital Investment & Balance Sheet
Linde reported capital expenditure of $936 million for the December-end quarter. The company ended the quarter with cash and cash equivalents of $5.4 billion. Linde’s long-term debt was $12.2 billion.
Guidance
For the December-end quarter, Linde projects adjusted earnings per share between $3.05 and $3.15. For 2023, it expects adjusted earnings per share of $13.15-$13.55.
The company expects capital expenditure of $3.5-$4 billion for the year, indicating an increase from the $3.2 billion reported in 2022.
Compass Mineralsis a leading provider of essential minerals that solve nature's challenges, including salt for winter roadway safety and other consumer, industrial and agricultural uses, and specialty plant nutrition minerals that improve the quality and yield of crops.
Compass Minerals is scheduled to report first-quarter fiscal 2023 results on Feb 7. In the trailing four quarters, CMP beat the Zacks Consensus Estimate for earnings twice and missed the same twice, delivering a surprise of 19.5%, on average.
Arkema is engaged in the manufacturing and marketing of vinyl products, industrial chemicals, and performance products. The company's products can be used for various purposes, including air conditioning or refrigeration; chemical processing, coating, construction; packaging; and automotive & transportation.
Arkema has witnessed upward estimate revisions for 2023 earnings in the past 30 days. In the trailing four quarters, ARKAY beat the Zacks Consensus Estimate for earnings twice and missed the same twice, delivering a surprise of 22.3%, on average.
Hecla Mining is a leading low-cost U.S. silver producer with operating mines in Alaska and Idaho. It is a growing gold producer with an operating mine in Quebec, Canada.
Hecla Mining is scheduled to report fourth-quarter 2022 results on Feb 15. In the trailing four quarters, HL beat the Zacks Consensus Estimate for earnings thrice and missed the same once, delivering a surprise of 25%, on average.
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Linde (LIN) Beats Q4 Earnings Estimates, Hikes Capex Outlook
Linde plc (LIN - Free Report) has reported fourth-quarter 2022 adjusted earnings from continuing operations of $3.16 per share, surpassing the Zacks Consensus Estimate of $2.91. The bottom line improved from the year-ago quarter’s profit of $2.77.
Total quarterly revenues of $7,899 million missed the Zacks Consensus Estimate of $8,087 million. The top line also declined from the year-ago quarter’s $8,298 million.
Strong quarterly earnings were driven by increased prices and volumes across all end markets.
Linde plc Price, Consensus and EPS Surprise
Linde plc price-consensus-eps-surprise-chart | Linde plc Quote
Segmental Highlights
The operating profit of Linde in the Americas segment was up 12% year over year to $944 million on higher pricing and stable volumes, aided by all end markets.
Linde’s profit in the EMEA segment increased 7.2% year over year to $509 million due to higher pricing.
Profit in the APAC segment increased 9.5% year over year to $416 million on an uptick in prices and volumes, primarily in the electronics, chemicals and energy end markets, including project start-ups.
Operating profit in the Engineering segment increased to $157 million from the prior year’s $150 million.
Backlogs
At the end of the fourth quarter, the company’s high-quality backlog was $9 billion, comprising a sale-of-gas backlog of $5.7 billion.
Capital Investment & Balance Sheet
Linde reported capital expenditure of $936 million for the December-end quarter. The company ended the quarter with cash and cash equivalents of $5.4 billion. Linde’s long-term debt was $12.2 billion.
Guidance
For the December-end quarter, Linde projects adjusted earnings per share between $3.05 and $3.15. For 2023, it expects adjusted earnings per share of $13.15-$13.55.
The company expects capital expenditure of $3.5-$4 billion for the year, indicating an increase from the $3.2 billion reported in 2022.
Zacks Rank & Stocks to Consider
Linde currently carries a Zacks Rank #3 (Hold).
A few better-ranked players belonging to the same space are Compass Minerals International (CMP - Free Report) , Arkema SA (ARKAY - Free Report) and Hecla Mining (HL - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Compass Mineralsis a leading provider of essential minerals that solve nature's challenges, including salt for winter roadway safety and other consumer, industrial and agricultural uses, and specialty plant nutrition minerals that improve the quality and yield of crops.
Compass Minerals is scheduled to report first-quarter fiscal 2023 results on Feb 7. In the trailing four quarters, CMP beat the Zacks Consensus Estimate for earnings twice and missed the same twice, delivering a surprise of 19.5%, on average.
Arkema is engaged in the manufacturing and marketing of vinyl products, industrial chemicals, and performance products. The company's products can be used for various purposes, including air conditioning or refrigeration; chemical processing, coating, construction; packaging; and automotive & transportation.
Arkema has witnessed upward estimate revisions for 2023 earnings in the past 30 days. In the trailing four quarters, ARKAY beat the Zacks Consensus Estimate for earnings twice and missed the same twice, delivering a surprise of 22.3%, on average.
Hecla Mining is a leading low-cost U.S. silver producer with operating mines in Alaska and Idaho. It is a growing gold producer with an operating mine in Quebec, Canada.
Hecla Mining is scheduled to report fourth-quarter 2022 results on Feb 15. In the trailing four quarters, HL beat the Zacks Consensus Estimate for earnings thrice and missed the same once, delivering a surprise of 25%, on average.