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Linde (LIN) Q3 Earnings Beat Estimates on Higher Volumes

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Linde plc (LIN - Free Report) announced third-quarter 2021 adjusted earnings from continuing operations of $2.73 per share, surpassing the Zacks Consensus Estimate of $2.68 and improving from the year-ago profit of $2.15.

Total revenues of $7,668 million beat the Zacks Consensus Estimate of $7,649 million and improved from the year-ago quarter’s $6,855 million.

The strong results were driven by increased demand from end markets and project start-ups that led to higher volumes and prices.

Linde plc Price, Consensus and EPS Surprise

 

Linde plc Price, Consensus and EPS Surprise

Linde plc price-consensus-eps-surprise-chart | Linde plc Quote

Segment Highlights

Operating profit in the Americas segment was up 15.8% year over year to $859 million on higher pricing and volumes. The increase in prices and volumes was aided by strong demand from most of the project start-ups and end-markets.

Profit in the EMEA segment increased 29% year over year to $476 million, thanks to increased volumes and pricing across all end markets.

Profit in the APAC segment increased 13.3% year over year to $382 million. The upside can be attributed to higher demand from project start-ups and end markets that aided pricing and volumes.

Operating profit at the Engineering segment remained flat year over year at $106 million.

Backlogs

At the end of the September quarter, the company’s total backlog was recorded at $13.4 billion, comprising a sale-of-gas backlog of $3.5 billion.

Capital Investment & Balance Sheet

Linde reported capital expenditure for the September quarter at $741 million. The company ended the third quarter with cash and cash equivalents of around $4.7 billion. Long-term debt was $11.5 billion, representing debt to capitalization of 24%.

Guidance

For the December quarter, the company projects adjusted diluted earnings per share from continuing operations in the band of $2.60 to $2.70.

For 2021, the firm is expecting adjusted diluted earnings per share in the band of $10.52 to $10.62. This represents upward revisions from the prior projected 2021 adjusted diluted earnings per share of $10.10 to $10.30. For supporting maintenance and growth projects, the company has set a capital budget for this year of $3 billion to $3.2 billion.

Zacks Rank & Stocks to Consider

The company carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the basic materials space include Methanex Corporation (MEOH - Free Report) , Olin Corporation (OLN - Free Report) and Dow Inc. (DOW - Free Report) . While Methanex and Olin sport a Zacks Rank #1 (Strong Buy), Dow carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Methanex has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Olin is expected to witness earnings growth of 717% in 2021.

Dow has seen upward earnings estimate revisions for 2021 in the past 30 days.


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