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Linde Gears Up to Report Q4 Earnings: What's in the Offing?

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Linde plc (LIN - Free Report) is set to report fourth-quarter 2024 results on Feb. 6, before market open.

Let us delve into the factors that are likely to influence the performance of this global industrial gas producer and engineering company. However, before that, it would be worth reviewing LIN’s performance in the previous quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Highlights of Q3 Earnings & Surprise History

In the last reported quarter, Linde’s earnings of $3.94 per share beat the Zacks Consensus Estimate of $3.89 owing to higher pricing from the Americas segment.

Linde’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 1.84%. 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

Estimate Revision

The Zacks Consensus Estimate for fourth-quarter earnings per share of $3.93 has witnessed two downward revisions and no upward revision in the past 30 days. The bottom-line estimate implies an improvement of 9.47% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for fourth-quarter revenues of $8.36 billion indicates a year-over-year improvement of 0.65%.

Factors to Note

Linde’s long-term contracts with major on-site clients are anticipated to have aided its performance in the fourth quarter. As a global manufacturer of industrial gases that caters to various industries, the company is likely to have generated profit from its Americas business unit, which should have supported its earnings.

The Zacks Consensus Estimate for operating profit in the Americas segment is pegged at $1.15 billion, up from $1.07 billion reported in the fourth quarter of 2023.

However, challenges are likely to have loomed due to an economic slowdown, particularly in Europe and China that might have affected industrial output. This is likely to have dampened the demand for industrial gases, which might have affected Linde’s revenues. Furthermore, increasing energy prices due to geopolitical tensions in the Middle East must have further affected margins.

The Zacks Consensus Estimate for the operating profit of the Engineering business unit is pegged at $106 million, down from $119 million a year ago.

These factors are anticipated to have affected demand and pricing dynamics, which might have adversely impacted LIN’s financial performance in the quarter.

Earnings Whispers

Our proven model does not predict 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. That is not the case here, as you will see below.

Earnings ESP: Linde’s Earnings ESP is -0.68%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks to Consider

Here are three firms that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

Hecla Mining Company (HL - Free Report) currently has an Earnings ESP of +50.0% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

HL is scheduled to release fourth-quarter earnings on Feb. 13. The Zacks Consensus Estimate for earnings is pegged at 4 cents per share, implying a 200% increase from the prior-year reported figure.

Centerra Gold (CGAU - Free Report) currently has an Earnings ESP of +25.38% and a Zacks Rank #3.

It is scheduled to release fourth-quarter earnings on Feb. 20. The Zacks Consensus Estimate for earnings is pegged at 22 cents per share, indicating a 21.43% decrease from the prior-year reported figure.

Kinross Gold Corporation (KGC - Free Report) currently has an Earnings ESP of +36.76% and a Zacks Rank #3.

Kinross is scheduled to release fourth-quarter earnings on Feb. 12. The Zacks Consensus Estimate for earnings is pegged at 23 cents per share, indicating a 109.1% increase from the prior-year reported figure.

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