Woking, the United Kingdom-based Linde plc (LIN) operates as an industrial gas and engineering company. Valued at $200 billion by market cap, LIN is the world's largest industrial gas company that offers industrial gases, technologies, and gas processing solutions that are used in production of clean hydrogen and carbon capture systems for energy transition, medical oxygen, and specialty gases for electronics. The global multinational chemical company is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Thursday, Feb. 6.
Ahead of the event, analysts expect LIN to report a profit of $3.94 per share on a diluted basis, up 9.8% from $3.59 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect LIN to report EPS of $15.48, up 9% from $14.20 in fiscal 2023. Its EPS is expected to rise 9.8% year over year to $17 in fiscal 2025.
LIN stock has underperformed the S&P 500’s ($SPX) 24.4% gains over the past 52 weeks, with shares up 2.9% during this period. However, it outperformed the Materials Select Sector SPDR Fund’s (XLB) marginal losses over the same time frame.
LIN has experienced a period of underperformance as a result of slow industrial activity, intensified competition for new projects, and the unpredictable fluctuations in energy prices, notably for natural gas and diesel fuel, posing a notable challenge to the company's profitability.
On Oct. 31, LIN shares closed down more than 3% after reporting its Q3 results. Its revenue stood at $8.4 billion, up 2.5% year over year. The company’s adjusted EPS increased 8.5% year over year to $3.94. LIN expects full-year adjusted EPS to be between $15.40 and $15.50.
Analysts’ consensus opinion on LIN stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 22 analysts covering the stock, 14 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and seven give a “Hold.” LIN’s average analyst price target is $508.05, indicating a potential upside of 21% from the current levels.
