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Linde (LIN) Up 11.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Linde (LIN - Free Report) . Shares have added about 11.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Linde due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Linde's Q4 Earnings Beat Estimates on Higher Prices
Linde reported fourth-quarter 2023 adjusted earnings of $3.59 per share, surpassing the Zacks Consensus Estimate of $3.50. The bottom line improved from the year-ago quarter figure of $3.16.
Total quarterly revenues of $8.3 billion beat the consensus estimate of $8.1 billion and increased from the year-ago quarter’s $7.9 billion.
Strong quarterly earnings were driven by higher pricing and volumes from the Americas segment.
Segmental Highlights
The operating profit of Linde’s Americas segment was up almost 14% year over year to $1.08 billion and beat the Zacks Consensus Estimate of $1.07 billion. An uptick in pricing and volumes aided the segment.
Linde’s profit in the EMEA segment soared 21% year over year to $615 million and beat the consensus mark of $613 million on the back of increased pricing.
Profit in the APAC segment increased almost 9% year over year to $452 million and topped the Zacks Consensus Estimate of $437 million. Handsome prices and stable volumes in the energy and chemicals markets aided the business unit.
Operating profit in the Engineering segment decreased to $119 million from the prior year’s $157 million but beat the consensus estimate of $93 million.
Backlogs
At the end of the fourth quarter, the company’s high-quality backlog was $8.5 billion, comprising a sale-of-gas backlog of $4.9 billion.
Capital Investment & Balance Sheet
Linde reported capital expenditure of $1.2 billion for the December quarter. The company ended the quarter with cash and cash equivalents of $4.7 billion. Its long-term debt was $13.4 billion.
Guidance
For the March-end quarter, Linde projects adjusted earnings per share between $3.58 and $3.68. For 2024, it estimates adjusted earnings per share of $15.25-$15.65.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
Currently, Linde has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Linde has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Linde is part of the Zacks Chemical - Specialty industry. Over the past month, Ashland (ASH - Free Report) , a stock from the same industry, has gained 5.2%. The company reported its results for the quarter ended December 2023 more than a month ago.
Ashland reported revenues of $473 million in the last reported quarter, representing a year-over-year change of -9.9%. EPS of $0.45 for the same period compares with $0.97 a year ago.
Ashland is expected to post earnings of $1.19 per share for the current quarter, representing a year-over-year change of -16.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Ashland. Also, the stock has a VGM Score of D.
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Linde (LIN) Up 11.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Linde (LIN - Free Report) . Shares have added about 11.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Linde due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Linde's Q4 Earnings Beat Estimates on Higher Prices
Linde reported fourth-quarter 2023 adjusted earnings of $3.59 per share, surpassing the Zacks Consensus Estimate of $3.50. The bottom line improved from the year-ago quarter figure of $3.16.
Total quarterly revenues of $8.3 billion beat the consensus estimate of $8.1 billion and increased from the year-ago quarter’s $7.9 billion.
Strong quarterly earnings were driven by higher pricing and volumes from the Americas segment.
Segmental Highlights
The operating profit of Linde’s Americas segment was up almost 14% year over year to $1.08 billion and beat the Zacks Consensus Estimate of $1.07 billion. An uptick in pricing and volumes aided the segment.
Linde’s profit in the EMEA segment soared 21% year over year to $615 million and beat the consensus mark of $613 million on the back of increased pricing.
Profit in the APAC segment increased almost 9% year over year to $452 million and topped the Zacks Consensus Estimate of $437 million. Handsome prices and stable volumes in the energy and chemicals markets aided the business unit.
Operating profit in the Engineering segment decreased to $119 million from the prior year’s $157 million but beat the consensus estimate of $93 million.
Backlogs
At the end of the fourth quarter, the company’s high-quality backlog was $8.5 billion, comprising a sale-of-gas backlog of $4.9 billion.
Capital Investment & Balance Sheet
Linde reported capital expenditure of $1.2 billion for the December quarter. The company ended the quarter with cash and cash equivalents of $4.7 billion. Its long-term debt was $13.4 billion.
Guidance
For the March-end quarter, Linde projects adjusted earnings per share between $3.58 and $3.68. For 2024, it estimates adjusted earnings per share of $15.25-$15.65.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
Currently, Linde has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Linde has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Linde is part of the Zacks Chemical - Specialty industry. Over the past month, Ashland (ASH - Free Report) , a stock from the same industry, has gained 5.2%. The company reported its results for the quarter ended December 2023 more than a month ago.
Ashland reported revenues of $473 million in the last reported quarter, representing a year-over-year change of -9.9%. EPS of $0.45 for the same period compares with $0.97 a year ago.
Ashland is expected to post earnings of $1.19 per share for the current quarter, representing a year-over-year change of -16.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Ashland. Also, the stock has a VGM Score of D.