Linde (LIN) To Report Q4 Earnings: What's In The Cards?

Linde plc (NYSE:LIN) is set to report fourth-quarter 2019 results on Feb 13, before the opening bell.

The leading industrial gases and engineering player, which was formed following the closing of the merger between Praxair (NYSE:PX) and Linde AG (DE:LING) on Oct 31, 2018, beat the Zacks Consensus Estimate for earnings in the last three quarters, the average positive surprise being 7.8%.

In the last reported quarter, the company’s earnings per share were $1.94, beating the Zacks Consensus Estimate of $1.78, thanks to improved prices across all business segments. Let’s see how things have shaped up prior to the upcoming announcement.

Estimate Picture

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.85 per share, which has not seen any revision in the past 30 days.

Key Factors to Note

Per data provided by the Federal Reserve, industrial production in the United States was 1%, 0.7% and 1% lower in October, November and December, as compared to the year-ago comparable months in 2018. This is likely to have hurt Linde’s fourth-quarter earnings as it is a leading producer and distributor of industrial gases which are utilized by various industries.

Moreover, the business scenario was not favorable in Europe. Notably, in Germany – the largest economy in the Eurozone area – industrial production declined 4.6%, 2.5% and 6.8% in October, November and December, from the comparable months in 2018, per TRADING ECONOMICS.

Earnings Whispers

Our proven model does not predict a beat for Linde this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.

Earnings ESP: Linde has an ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, the company carries a Zacks Rank #2.

Stocks Poised to Beat Estimates

Here are some companies in the basic materials space you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Agnico Eagle Mines Limited (NYSE:AEM) has an Earnings ESP of +0.47%. It currently carries a Zacks Rank #3. The company is scheduled to release earnings on Feb 13. You can see the complete list of today’s Zacks #1 Rank stocks here.

YAMANA GOLD INC. (NYSE:AUY) has an Earnings ESP of +9.09% and is a #3 Ranked player. The company is scheduled to release earnings on Feb 13.

Ternium SA (NYSE:TX) has an Earnings ESP of +5.13% and is a #3 Ranked player. The company is set to release earnings on Feb 18.

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