NASDAQ$LIN

Linde PLC · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong results driven by relentless culture to optimize the base business while increasing network density and deploying capital to high-quality growth initiatives.

Linde reported third-quarter 2023 net income of $1,565 million and diluted earnings per share of $3.19, up 23% and 26% respectively. Sales for the third quarter were $8,155 million, 7% below prior year but underlying sales increased 3%.

  • Sales $8.2 billion, down 7% YoY, underlying sales up 3%
  • Operating profit $2.1 billion; adjusted operating profit $2.3 billion, up 15%
  • Operating profit margin 25.2%; adjusted operating profit margin 28.3%, up 550 basis points
  • EPS $3.19 up 26%; adjusted EPS $3.63, up 17% YoY

Headline financials

Total Revenue

$8.16B

Previous: $8.8B-7.3%
EPS (adj)

$3.63

Previous: $3.10+17.1%
Operating Margin

28.3%

Previous: 22.8%+24.1%
Capital Expenditures

-$2.64B

Previous: -$2.24B-17.8%
Free Cash Flow

-$1.07B

Previous: -$964M-11.1%
Net Income

$1.57B

Previous: $1.27B+22.9%
Operating Income

$2.05B

Previous: $1.61B+27.2%
Gross Profit

-$4.31B

Previous: -$5.29B+18.4%
Cash & Equivalents

$3.89B

Previous: $3.76B+3.7%
Total Assets

$77.8B

Previous: $74.3B+4.7%
R&D Expense

$36M

No prior period
Stock-Based Comp

$36M

Previous: $27M+33.3%

Revenue & EPS history

Linde · Revenue · Quarterly

$8.16B

Q3 2023-7.3%vs Q3 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Linde · $7.37B total across 3 segments · Q3 2023

  • Americas
    $3.63B
  • EMEA
    $2.11B
  • APAC
    $1.64B

Forward guidance

For the fourth quarter of 2023, Linde expects adjusted diluted earnings per share in the range of $3.38 to $3.48, up 7% to 10% versus prior-year quarter. For the full year 2023, the company expects adjusted diluted earnings per share to be in the range of $14.00 to $14.10, up 14% to 15% versus prior year and assumes no currency impact.

Tailwinds

  • Adjusted diluted earnings per share in the range of $3.38 to $3.48 for Q4 2023
  • 7% to 10% increase in adjusted diluted earnings per share versus prior-year quarter for Q4 2023
  • Currency tailwind of 1% year-over-year is expected for Q4 2023
  • Adjusted diluted earnings per share to be in the range of $14.00 to $14.10 for full year 2023
  • 14% to 15% increase in adjusted diluted earnings per share versus prior year for full year 2023

Headwinds

  • Currency headwind of 2% sequentially is expected for Q4 2023
  • Sales were down 7% year-over-year
  • Operating cash flow decreased 4% versus prior year
  • Americas sales were 2% lower versus prior year
  • APAC sales were 1% lower versus prior year

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.3%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+3.0%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+6.4%

Q3 2020

Best reaction

-4.3%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%+0.1%-0.7%
Q4 2025-2.9%-2.7%+2.4%
Q3 2025-4.2%-2.7%-4.6%
Q2 2025-0.2%+2.4%+3.9%
Q1 2025-1.1%-1.4%+3.2%
Q4 2024+1.5%+1.6%+3.3%
Q3 2024-3.4%-3.9%-2.6%
Q2 2024-2.2%-2.5%+5.5%
Q1 2024-4.3%-2.9%-1.6%
Q4 2023+4.0%+4.7%+16.1%
Q3 2023+1.7%+4.9%+13.7%
Q2 2023+0.1%+0.1%-1.7%
Q1 2023+1.2%+1.4%-2.4%
Q4 2022+3.5%+2.8%+7.1%
Q3 2022+2.4%+1.1%+16.8%
Q2 2022+4.0%+2.5%-1.4%
Q1 2022+1.6%+2.3%+7.4%
Q4 2021-3.1%-0.7%-7.7%
Q3 2021+0.1%+2.7%+0.5%
Q2 2021+0.3%+2.1%+5.0%
Q1 2021+2.5%+2.4%+2.8%
Q4 2020+3.3%+1.4%-0.6%
Q3 2020+6.4%+11.4%+6.5%
Q2 2020+0.2%-0.4%+3.6%
Q1 2020+5.3%+2.3%+23.7%
Q4 2019+2.5%+2.9%-18.7%
Q3 2019+2.7%+3.7%+3.8%
Q2 2019+0.6%+2.3%-0.1%
Q1 2019+4.2%+4.3%+15.4%
Q4 2018-1.6%-3.7%+2.0%
Q4 2017-1.6%-3.7%+2.0%
Q4 2016-1.6%-3.7%+2.0%
Q2 2018-1.6%-3.7%+2.0%
Q3 2018-3.7%-7.2%-7.6%
Q1 2018-1.5%+1.7%+5.7%
Q1 2017+0.0%-2.7%+3.1%
Q2 2017-1.4%-0.4%+4.7%
Q3 2017-1.4%-0.4%+4.7%
Q3 2016+2.0%+1.3%-1.2%
Q2 2016+2.5%+0.8%+5.3%
Q1 2016+0.2%
Q4 2015-1.5%
Q3 2015+0.9%
Q2 2015-0.0%
Q1 2015-0.4%
Q4 2014-1.1%
Q3 2014+0.7%
Q2 2014-0.8%
Q1 2014-0.7%
Q4 2013-0.4%
Q3 2013-0.7%
Q2 2013+1.4%
Q1 2013-0.4%
Q4 2012+4.3%
Q3 2012+0.1%
Q2 2012-0.4%
Q1 2012+0.3%
Q4 2011+0.9%
Q3 2011-3.8%
Q2 2011+1.0%
Q1 2011+1.0%
Q4 2010+0.4%
Q3 2010-0.1%
Q2 2010-0.8%
Q1 2010+1.3%

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