Little profits on Thursday were a great example why investors should always wait to hear from management before making any moves. The shares of the industrial gas giant fell after giving a softer prediction than Wall Street – and is accustomed to it. But the shares withdrew on its way to calling after profits as investors better understood the prospect of management, including some conservatism embedded in assumptions. Revenue in the fourth quarter is plunged 0.2% to $ 8.28 billion, slightly lost estimates of $ 8.4 billion expected by analysts, according to estimates compiled by LSEG. The regulated profits per share (EPS) increased 0.8% from year to year to $ 3.97, reaching 4 cents expectations, LSEG data showed. Linde (Lin) why we own it: the industrial gas supplier and the engineering firm have a stellar record of continuous profit growth. Its exposure to a wide range of industries, such as health care and electronics, and geographies – paired with excellent executive leadership and disciplined capital management – has been a recipe for sustainable success to continue. Competitors: Air Liquid and Air Products The latest purchase: December 18, 2024 initiated: February 18, 2021 The last shares of Lind have had a volatile Thursday. The shares traded lower for most of the market trading and fell as low as $ 450 per share over the opening bell in immediate response to 2025 forecast. However, shares fought its path to positive territory after investors dissolved call of the conference and received a better understanding of the management perspective. Indeed, the projected increase in born profits for 2025 is below 10% that we are used to seeing the company raised year by year. But the company is not benefiting from increasing volume, with management that estimates a range of basic volume of 2% to 2% negative for this year. Moreover, the currency is a considerable head, attracting revenue from about 4% estimated this year. However, management was quick to remind investors that this is merely a prediction and does not reflect the potential opportunities for additional prices to compensate these heads. “Historically, depreciation of large currencies have often been followed by the most important local inflation periods, with 2022 being a final example,” said CFO Matt White. “If this happens, I would predict additional price options to recover the impact of currency depreciation. These possible price options have not been baked in the instruction range at this time, as the quantity or time of subsequent inflation is difficult to appreciated. ” This comment made us feel better about the view of the year, being a starting point for the year and not fully hostage to currency fluctuations. Linde may not have control over currency and global industrial production, but the company continues to operate at a high level. Improving the company’s wide margin was impressive, expanding to nearly 30% by 27.4%. And the company just completed a year in which it signed a large number of projects and increased its backwardness to over $ 10 billion. At the call, management was very proud of the 59 small victories in the country was born signed in 2024. “I am excited about the small pages because from so many different perspectives, they are actually a perfect way to generate Pension income for this business, ”White explained. We reiterate our rating 1 and our $ 500 price target. Lin 1y Mountain Linde Linde 1-year-old quarterly commentary on the latest market, food and drink had the strongest increase in sales from year to year, increasing by 6%. Next was a tie between electronics and production, both 4%. Metals and mines increased 2%, while health care and chemicals and energy were both flat. According to the region, America was the bright country, with 1% sales year ago, driven by 1% volume increase, a 2% benefit from price and mixing, a 3% decrease in coin (Brazil, Mexico and Argentina) , and a 1% increase from purchases. The margins were also strong, expanding to nearly 32% thanks to constant price and productivity initiatives. Increased volume was driven by production, electronics, and chemicals and energy. Europe is a worse view. Sales from the region of Europe, Middle East and Africa (EMEA) fell 2% from year to year due to a 2% drop in volume, a 3% benefit from price and mixing, and a 2% decrease in passage of cost, and a 1% head of coin. Despite soft sales, the margins were very strong, increasing 330 base points from last year due to strong price and productivity initiatives. The company expects conditions to continue to mitigate, mainly in Western Europe, though Eastern Europe also has its challenges. The weakness mainly comes from the cyclic complex, with metals, production, chemicals and energy that is expected to have lower volumes. Elastic end markets are expected to continue to grow. Lost ratings in Asia-Pacific, but still retained revenue and growth of margin. Sales increased 2% year by year, prompted by a 1% increase in volumes thanks to the project beginnings, mainly in the electronics industry. It also had a positive 1% impact from the cost passage. The margins expanded 240 base points from year to year to 30%, driven by what the company described as “good cost management”. For 2025, the company is not anticipating any significant recovery in China. The company expects most sectors in the country to be either stable or down, except for the electronics sector, which they said will continue to grow. Outlook for 2025, Linde predicted regulated revenue per share in the range of $ 16.15 to $ 16.55, representing a 4% increase to 7% above 2024. The middle point of $ 16.35 of the Outlook range is much below the Factset consensus rating of $ 16.81. A major factor to keep in mind is the impact of the strong American dollar. Linde estimates a 4% currency head throughout the year in 2025 EPS. When excluding the impact of the currency, the prediction of increasing earnings has returned to its typical interval of 8% to 11%. As usual, the middle point of view of the born does not receive any economic improvement. This means if the economy does a little better, we would expect revenue at the high range of range. If economic conditions deteriorate, the income of the born may, ultimately the end of the range, but we will probably see support from mitigating actions from management and shares repurchase. (Jim Cramer’s charity is the Long Lin. See here for a full stock list.) 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A liquid hydrogen tanker truck that receives a fuel distribution at the hydrogen factory was born in Leuna, Germany, Tuesday, July 14, 2020.
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BirthThursday profits were a great example why investors should always wait to hear from management before making any moves.
The shares of the industrial gas giant fell after giving a softer prediction than Wall Street – and is accustomed to it. But the shares withdrew on its way to calling after profits as investors better understood the prospect of management, including some conservatism embedded in assumptions.