Analysts made a financial statement on Linde plc’s first quarter report (NYSE: LIN)


A week ago, Linde plc (NYSE: LIN) released a solid set of quarterly numbers that could potentially lead to a stock appreciation. Overall results were good, with revenue beating analysts’ forecast by 3.0% to $ 7.2 billion. Statutory earnings per share (EPS) stood at US $ 1.86, about 2.5% above analyst expectations. Analysts usually update their forecasts with each earnings report, and we can judge from their estimates whether their view of the business has changed or if there are new concerns to consider. We thought readers would find it interesting to see analysts’ latest (statutory) post-earnings forecasts for next year. NYSE: LIN Profit and Revenue Growth May 9, 2021

Based on the latest results, the current consensus of Linde’s 27 analysts is for 2021 revenue of US $ 29.0 billion, which would reflect a satisfactory 4.7% increase in sales over the past 12 months. last months. Earnings per share are expected to rise 52% to US $ 8.41. Prior to this earnings report, analysts were forecasting revenue of $ 28.6 billion and earnings per share (EPS) of $ 7.89 in 2021. So the consensus seems to have become a bit more bullish on earnings potential. de Linde following these results.

The consensus price target remained unchanged at $ 308, implying that improving earnings prospects should not have a long-term impact on creating shareholder value. This is not the only conclusion we can draw from this data, however, as some investors also like to factor in the spread in estimates when evaluating analysts’ price targets. Currently, the most bullish analyst values ​​Linde at US $ 350 per share, while the most bearish the price at US $ 232. As you can see, not all analysts agree on the stock’s future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not entirely unpredictable.

Looking at the big picture now, one way to make sense of these forecasts is to see how they stack up against both past performance and industry growth estimates. It’s pretty clear that Linde’s revenue growth is expected to slow significantly, with revenue by the end of 2021 expected to grow 6.3% on an annualized basis. This is compared to a historic growth rate of 26% over the past five years. Juxtapose that with other industry companies covered by analysts, which are expected to grow their revenues (in total) by 5.3% per year. So it’s pretty clear that while Linde’s revenue growth is expected to slow, it is expected to grow roughly in line with the industry.

The bottom line

The most important thing here is that analysts have improved their earnings per share estimates, suggesting that there has been a marked increase in optimism towards Linde as a result of these results. Fortunately, there has been no real change in the sales forecast, with activity still expected to grow in line with the industry as a whole. The consensus price target held steady at US $ 308 as the latest estimates were not sufficient to impact their price targets.

With this in mind, we still believe that the long-term trajectory of the company is much more important for investors to consider. We have estimates – from several Linde analysts – up to 2025, and you can see them for free on our platform here.

However, before you get too excited, we’ve found out 1 warning sign for Linde that you should be aware of.

This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.

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