Linde Gears Up to Report Q1 Earnings: What's in the Offing?

Linde plc LIN is set to report first-quarter 2025 results on May 1, before market open.

Let us delve into the factors that are likely to have influenced the performance of this global industrial gas producer. However, before that, it would be worth reviewing LIN’s performance in the previous quarter.

Highlights of Q4 Earnings & Surprise History

In the last reported quarter, Linde’s earnings of $3.97 per share beat the Zacks Consensus Estimate of $3.93 due to higher pricing and increased volumes from the Americas segment. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Linde’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 1.45%. This is depicted in the graph below: 

Linde PLC Price and EPS Surprise

Linde PLC price-eps-surprise | Linde PLC Quote

Estimate Revision

The Zacks Consensus Estimate for first-quarter earnings per share of $3.93 has witnessed two upward revisions and no downward revision in the past 30 days. The bottom-line estimate implies an improvement of 4.8% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for first-quarter revenues of $8.26 billion indicates a year-over-year improvement of 1.96%.

Factors to Note

Linde is a global leader in the production of industrial gases, such as oxygen, hydrogen, nitrogen and others that cater to a variety of end markets, including healthcare, manufacturing and chemicals & refining. Its long-term contracts with major on-site clients are a major positive that must have aided earnings in the to-be-reported quarter.

As a global manufacturer of industrial gases, the company is likely to have generated profits due to strong contributions from its Americas business segment. The gross margins on industrial gases are likely to have improved in the first quarter. Industrial production is expected to have remained flat year over year, resulting in stable revenues. The contributions from the Americas segment are also expected to have helped Linde offset the challenges that it might have faced in other markets like China, where industrial output likely declined due to an economic slowdown.

The Zacks Consensus Estimate for operating profit in the Americas segment is pegged at $1.16 billion, up from $1.12 billion reported in the first quarter of 2024.

The Zacks Consensus Estimate for the operating profit of the Engineering business unit is pegged at $96 million, up from $93 million a year ago.

These factors are anticipated to have supported demand and pricing dynamics, which might have aided LIN’s financial performance in the quarter.

Earnings Whispers

Our proven model predicts an earnings beat for Linde this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is the case here, as you will see below.

Earnings ESP: Linde’s Earnings ESP is +0.30%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Other Stocks to Consider

Here are some other stocks that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.

Kinross Gold Corporation KGC currently has an Earnings ESP of +11.07% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kinross is scheduled to release first-quarter 2025 earnings on May 6. The Zacks Consensus Estimate for earnings is pegged at 22 cents per share, which indicates a 120% increase from the prior-year reported figure.

Air Products and Chemicals APD currently has an Earnings ESP of +0.18% and a Zacks Rank #3.

Air Products and Chemicals is scheduled to release first-quarter 2025 earnings on May 1. The Zacks Consensus Estimate for earnings is pegged at $2.83 per share, which implies a decline of 0.70% from the prior-year reported figure.

The Mosaic Company MOS currently has an Earnings ESP of +10.09% and a Zacks Rank #3.

The Mosaic Company is scheduled to release first-quarter 2025 earnings on May 6. The Zacks Consensus Estimate for earnings is pegged at 39 cents per share, which indicates a decline of 40% from the prior-year reported figure.

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This article originally published on Zacks Investment Research (zacks.com).

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