WOKING, UK - Linde plc (NASDAQ:NYSE:LIN), a leading industrial gas company, reported its first-quarter earnings with an adjusted EPS of $3.75, surpassing analyst estimates by $0.08. Despite the beat on earnings per share, the company's revenue for the quarter fell short of expectations, coming in at $8.1 billion against the consensus estimate of $8.4 billion.
The company's first-quarter sales saw a slight 1% decline from the previous year; however, underlying sales adjusted for certain items showed a 1% increase. This was attributed to a 2% price attainment which was partially offset by a 1% decrease in volumes, primarily in the manufacturing end market.
Linde's operating profit for the quarter was robust at $2.1 billion, with an adjusted operating profit of $2.3 billion, marking a 6% increase. The adjusted operating profit margin expanded by 200 basis points to 28.9%.
Linde's CEO, Sanjiv Lamba, commented on the results, "I’m proud of how the Linde team continues to deliver high-quality results despite economic headwinds. We had another strong quarter, growing EPS 10%, ROC to 25.6% and expanding operating margins 200 basis points, reaching 28.9%. These results demonstrate the resiliency of our integrated industrial gas model through optimizing our network density, all while developing high-quality growth opportunities.”
Looking ahead, Linde provided guidance for the second quarter of 2024 with an adjusted EPS range of $3.70 to $3.80, which is below the analyst consensus of $3.89. For the full year 2024, the company forecasts an adjusted EPS of $15.30 to $15.60, which at the midpoint is slightly below the consensus of $15.52.
The company's financial outlook reflects confidence in its operational model and its ability to generate shareholder value, even in an uncertain economic climate. Linde's planned capital expenditures for the year, aimed at supporting growth and maintenance, are estimated to be between $4.0 billion and $4.5 billion. This includes the progression of a $4.9 billion contractual sale of gas project backlog, signaling continued investment in growth opportunities.
Market response to Linde's financial results and forward-looking guidance was not provided, indicating that the stock movement was not significant enough to draw major conclusions from it.
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