Linde's (LIN) Q3 Earnings Beat Estimates on Higher Prices
Linde plc LIN reported third-quarter 2023 adjusted earnings of $3.63 per share, surpassing the Zacks Consensus Estimate of $3.57. The bottom line improved from the year-ago quarter’s profit of $3.10.
Total quarterly revenues of $8.2 billion missed the Zacks Consensus Estimate of $8.7 billion and declined from the year-ago quarter’s $8.8 million.
Strong quarterly earnings were driven by higher pricing from the Americas segment.
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 10.3% year over year to $1.07 billion but missed the Zacks Consensus Estimate of $1.1 billion. An uptick in pricing aided the segment, offset partially by lower volumes.
Linde’s profit in the EMEA segment surged 36.3% year over year to $634 million and beat the Zacks Consensus Estimate of $590 million due to increased pricing.
Profit in the APAC segment increased 7% year over year to $459 million but missed the Zacks Consensus Estimate of $480. Handsome prices and stable volumes aided the business unit.
Operating profit in the Engineering segment decreased to $116 million from the prior year’s $150 million but beat the Zacks Consensus Estimate of $104 million.
Backlogs
At the end of the third quarter, the company’s high-quality backlog was $8.1 billion, comprising a sale-of-gas backlog of $4.5 billion.
Capital Investment & Balance Sheet
Linde reported capital expenditure of $948 million for the September quarter. The company ended the quarter with cash and cash equivalents of $3.9 billion. Linde’s long-term debt was $13.2 billion.
Guidance
For the December-end quarter, Linde projects adjusted earnings per share between $3.38 and $3.48. For 2023, it estimates adjusted earnings per share of $14-$14.10.
The company expects capital expenditure of $3.5-$4 billion for the year.
Zacks Rank & Key Picks
Currently, Linde carries a Zacks Rank #3 (Hold). Better-ranked players in the basic material space include Alpha Metallurgical Resources, Inc. AMR, The Andersons, Inc. ANDE and International Paper IP. While The Andersons sports a Zacks Rank #1 (Strong Buy), Alpha Metallurgical and International Paper carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alpha Metallurgical is a well-known supplier of metallurgical products for the steel industry in the United States. For 2024, the stock has witnessed upward earnings estimate revisions over the past 30 days.
The Andersons is primarily involved in conducting business activities within the commodity merchandising, renewables, and plant nutrient sectors. For 2023, the stock has witnessed upward earnings estimate revisions.
Recovery in demand across its portfolio has been aiding International Paper. The company has also been focused on controlling its costs.
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Alpha Metallurgical Resources, Inc. (AMR) : Free Stock Analysis Report
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Linde PLC (LIN) : Free Stock Analysis Report
