Back to top

Image: Bigstock

Linde's Q3 Earnings Beat Estimates on Higher Americas Pricing

Read MoreHide Full Article

Linde plc (LIN - Free Report) reported third-quarter 2024 adjusted earnings per share (EPS) of $3.94, which surpassed the Zacks Consensus Estimate of $3.89. The bottom line improved from the year-ago quarter’s figure of $3.63.

Total quarterly revenues of $8.36 billion missed the Zacks Consensus Estimate of $8.38 billion. However, the top line increased from the year-ago quarter’s $8.16 billion.

The solid quarterly earnings were driven by higher pricing from the Americas segment, partially offset by lower contributions from the Engineering business unit.

Segmental Highlights

The operating profit of Linde’s Americas segment increased 7.4% from $1.07 billion in the prior-year quarter to $1.15 billion and beat the Zacks Consensus Estimate of $1.13 million. An uptick in pricing and growth in volumes aided the segment.

Linde’s profit in the EMEA segment soared almost 11% year over year to $703 million but missed the Zacks Consensus Estimate of $704 million. Although increased pricing aided the segment, a decline in volumes partially offset the positive.

The APAC segment's profit increased from $459 million a year ago to $497 million and met the Zacks Consensus Estimate. Growth in volumes on the back of project startup supported the business unit.

Operating profit in the Engineering segment decreased to $108 million from the prior-year quarter’s $116 million.

Backlogs

At the end of the third quarter, the company’s high-quality project backlog was $10.1 billion, comprising a sale-of-gas backlog of $7 billion.

Capital Investment & Balance Sheet

Linde reported capital expenditure of $1.07 billion for the September quarter. The company ended the quarter with cash and cash equivalents of $5.2 billion. Its long-term debt was $17.5 billion.

Guidance

For the fourth quarter, Linde projects adjusted EPS between $3.86 and $3.96. For 2024, it expects adjusted EPS to be in the band of $15.40-$15.50.

LIN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other well-known stocks from the Basic Materials sector are ATI Inc (ATI - Free Report) , Air Products (APD - Free Report) , HawkinsInc. (HWKN - Free Report) . While ATI and Hawkins have already reported results for the September quarter, Air Products is expected to release earnings soon.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Air Products and Chemicals, Inc. (APD) - free report >>

ATI Inc. (ATI) - free report >>

Linde PLC (LIN) - free report >>

Hawkins, Inc. (HWKN) - free report >>

Published in