News

Linde LIN is set to report fourth-quarter 2023 results on Feb 6, before the opening bell.

In the last reported quarter, Linde’s earnings of $3.63 per share beat the Zacks Consensus Estimate of $3.57, owing to higher pricing from the Americas segment.

The leading global industrial gases and engineering company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 5.7%. This is depicted in the graph below.

Linde PLC Price and EPS Surprise

Trend in Estimate Revision

The Zacks Consensus Estimate for fourth-quarter earnings per share of $3.50 has witnessed one upward and one downward revision in the past 30 days. The figure suggests an improvement of 10.8% from the prior-year quarter’s reported number.

The consensus estimate for fourth-quarter revenues of $8.1 billion indicates a year-over-year improvement of 2.1%.

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 just the case here, as you will see below.

Earnings ESP: Linde’s Earnings ESP is +0.12%. 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.

Factors to Note

Industrial production in the United States increased year over year in the last month of the fourth quarter of 2023. Since Linde produces industrial gases used across numerous industries, it is likely to have generated higher profit from its Americas business unit, contributing a major portion to LIN’s earnings. The Zacks Consensus Estimate for operating profit from the Americas segment is pegged at $1.1 billion, suggesting a year-over-year increase from $0.9 billion in the fourth quarter of 2022.

Other Stocks to Consider

Here are a few other firms in the basic materials space that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.

Eldorado Gold Corporation EGO has an Earnings ESP of +3.28% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

EGO is scheduled to release fourth-quarter results on Feb 22. The Zacks Consensus Estimate for EGO’s earnings is pegged at 20 cents per share.

Kinross Gold Corporation KGC has an Earnings ESP of +12.11% and a Zacks Rank of 3 at present.

Kinross Gold is scheduled to report fourth-quarter results on Feb 14. The Zacks Consensus Estimate for earnings is pegged at 9 cents per share.

Teck Resources Limited TECK has an Earnings ESP of +0.99% and a Zacks Rank #3 at present.

TECK is scheduled to release fourth-quarter earnings on Feb 22. The Zacks Consensus Estimate for earnings is pegged at 98 cents per share.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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