Linde Clocks 14% Sales Growth In Q4; Guides Q1, FY22 EPS Above Consensus

Linde PLC LIN reported fourth-quarter sales growth of 14.1% year-over-year to $8.29 billion, beating the consensus of $6.95 billion. Underlying sales increased 9%, including 3% price attainment and 6% higher volumes.
Sales by segments: Americas $3.15 billion (+16% Y/Y), APAC $1.59 billion (+1% Y/Y), EMEA $2.06 billion (+18% Y/Y), Engineering $946 million (+25% Y/Y).
Adjusted EPS improved to $2.77 from $2.30 in 4Q20, beating the consensus of $2.39.
Adjusted operating profit increased by 14% Y/Y to $1.84 billion, and the margin was flat at 22.2%.
Linde generated operating cash flow in FY21 of $9.7 billion, an increase of 31% Y/Y.
Adjusted EBITDA was $2.5 billion (+10.7% Y/Y) and margin contracted by 100 bps to 31.3%.
The company ended the quarter with a ~$13 billion backlog.
1Q22 Outlook: Linde expects adjusted EPS of $2.70-$2.80 (consensus $2.46), up 8%-12% Y/Y.
FY22 Outlook: Linde expects adjusted EPS of $11.55-$11.85 (consensus $10.30), up 8%-11% Y/Y. Capital expenditures of $3 billion-$3.5 billion.
Price Action: LIN shares are trading higher by 2.02% at $310.29 during the premarket session on Thursday.

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