Linde (LIN) shares popped 2.65% after the global industrial gas and engineering company delivered record-breaking second-quarter financial results. Net sales were up 19% year-over-year to $7.6 billion, beating consensus estimates of $7.35 billion. Revenue growth came on the back of high volumes and price increases driven by strong demand in cyclical end markets.
Adjusted income from continuing operations jumped 41% to $1.4 billion, leading to adjusted earnings per share of $2.70, a 42% increase from last year’s same quarter levels. Linde exited the quarter with a backlog of about $7.5 billion, which includes the sale of gas and plant projects. (See Linde stock charts on TipRanks)
Commenting on the financial results, CEO Steve Angel reiterated that the team continues to execute well against the core strategy. Additionally, the focus is on delivering an industry-leading performance which should allow Linde to deliver another outstanding year.
Angel stated, “Linde employees delivered another quarter of record breaking financial results with operating profit margins expanding 350 basis points, ROC improving to 15.7% and EPS growing 42%, reaching an all-time high of $2.70.”
Linde is projecting diluted earnings per share of between $2.60 and $2.70 for the third quarter, representing a 21% to 26% year-over-year increase from last year’s levels. The company has also adjusted its full-year guidance and now expects adjusted diluted earnings to range between $10.10 and $10.30, signaling 23% to 25% year-over-year growth.
Consensus among analysts is a Strong Buy based on 18 Buys and 2 Holds. The average Linde price target of $336.38 implies 9.43% upside potential to current levels.
LIN scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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