Chart Industries Shares Fall After Q3 Miss; FY21 Outlook Cut

Chart Industries, Inc. GTLS reported third-quarter sales growth of 20.2% year-over-year to $328.3 million, an organic increase of 13.4%, missing the consensus of $348.21 million.
Sales by segments: Cryo Tank Solutions $112.2 million (+10% Y/Y), Heat Transfer Systems $56.4 million (-30.1% Y/), Specialty Products $116.9 million (+109% Y/Y), Repair, Service & Leasing $46.3 million (+26.9% Y/Y).
Adjusted EPS improved to $0.81 from $0.64 in 3Q20, missing the consensus of $0.84.
The gross margin contracted by 600 bps to 22.8%.
The operating income decreased by 51.2% Y/Y to $13.7 million, and the margin contracted by 610 bps to 4.2%.
Orders of $350.2 million resulted in a backlog of $1.1 billion, bringing year-to-date orders to $1.21 billion (+53.3% Y/Y).
Chart Industries' cash used in operating activities year-to-date totaled $41.6 million, compared to $112.5 million net cash provided a year ago. It held cash and equivalents of $103.1 million as of September 30, 2021.
The company projects certain further tempering of specific headwinds in the coming quarter with more normalization of the macro difficulties later in 2022.
FY21 Outlook: Chart Industries slashed its sales outlook to $1.31 billion - $1.33 billion (prior guidance of $1.38 billion - $1.43 billion) due to project shipment and revenue recognition timing shifting to 2022, versus the consensus of $1.39 billion. It sees adjusted non-diluted EPS of $2.75 - $3.10.
FY22 Outlook: Chart Industries increased the revenue outlook to $1.70 billion - $1.85 billion (prior view $1.60 billion - $1.70 billion) against the consensus of $1.70 billion. It sees adjusted non-diluted EPS of $5.25 - $6.50.
Price Action: GTLS shares are trading lower by 7.36% at $168.08 on the last check Thursday.

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