Linde Q3 Earnings Surpass Analyst View, Lifts FY21 EPS Guidance

Linde PLC LIN reported third-quarter sales growth of 11.9% year-over-year to $7.67 billion, beating the consensus of $6.44 billion. Underlying sales increased 11%, including 3% price attainment and 8% higher volumes.
Sales by segments: Americas $3.09 billion (+17% Y/Y), APAC $1.56 billion (+5% Y/Y), EMEA $1.91 billion (+18% Y/Y), Engineering $601 million (-11.4% Y/Y).
Adjusted EPS improved to $2.73 from $2.15 in 3Q20, beating the consensus of $2.24.
Adjusted operating profit increased by 19.5% Y/Y to $1.81 billion, and margin expanded by 150 bps to 23.6%.
Linde generated cash from operating activities year-to-date of $6.49 billion, compared to $4.99 billion a year ago.
Adjusted EBITDA was $2.56 billion (+14.6% Y/Y) and margin improved by 80 bps to 33.4%.
The company ended the quarter with a total backlog of ~$13.4 billion.
Q4 Outlook: Linde expects adjusted EPS to grow 13%-17% Y/Y to $2.60 - $2.70, above the consensus of $2.20.
FY21 Outlook: The company expects adjusted EPS to grow 28%-29% Y/Y to $10.52 - $10.62 (prior expectation of $10.10 - $10.30), above the consensus of $8.93.
It expects capital expenditures of $3 billion to $3.2 billion in FY21.
Price Action: LIN shares are trading lower by 0.73% at $316.64 during the premarket session on Thursday.

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