Linde on Thursday delivered a top- and bottom-line beat, with sales, operating profit, and earnings all representing quarterly records for the industrial gas giant. The company continues to benefit from the AI buildout and the commercialization of space. Revenue in the third quarter ended Sept. 30 rose 9.2% to $9.4 billion, surpassing the $2.2 billion consensus, according to LSEG. Adjusted earnings per share (EPS) totaled $4.59, up 9% year over year and ahead of the LSEG consensus of $4.54 per share. LIN YTD mountain Linde YTD Shares of Linde fell more than 1% in Thursday's tough market. Guidance was a tad light for the current quarter. That could be a reason for some selling. Profit-taking could be another, as the Club stock has mounted a bit of a recovery rally since its summer swoon from all-time highs in July into its most recent low in mid-September. Bottom line It was an overall solid quarter from Linde. While the current (fourth) quarter guide may have been light, the outlook for the full year was on par with expectations. Importantly, the revenue…
Linde delivers a good quarter and puts in a fix for an overhang on the stock
In short
Linde generated $9.4 billion in quarterly revenue, up 9.2% year over year, while adjusted earnings per share expanded 9% to reach $4.59. Strong performance was aided by resilient end markets, led by a 15% increase in electronics sales due to semiconductor manufacturing gas demand. Meanwhile, management logged a $425 million restructuring charge to cover severance and reshape the Lincare business, shifting the unit's reporting structure to provide clearer transparency for investors.
Key points
- Linde is reviewing strategic alternatives for its Lincare home health division after reas…: Linde is reviewing strategic alternatives for its Lincare home health division after reassigning the business to Chief Financial Officer Matt White.
- Despite posting quarterly record beats, Linde's stock declined over 1% on the back of lig…: Despite posting quarterly record beats, Linde's stock declined over 1% on the back of light fourth-quarter earnings guidance.
- Surging demand for semiconductor gases and cyclical energy products delivered double-digi…: Surging demand for semiconductor gases and cyclical energy products delivered double-digit revenue expansions across major industrial end markets.