Linde (LIN) To Report Q3 Earnings: What's In The Cards?

Linde plc (NYSE:LIN) is set to report third-quarter 2019 results on Nov 12, 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 two quarters, the average positive surprise being 7.2%. In the last reported quarter, the company’s earnings per share were $1.83, beating the Zacks Consensus Estimate of $1.75.

Let’s see how things have shaped up prior to the upcoming announcement.

Estimate Picture

The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.78 per share, which has not seen any revisions in the past 30 days.

Key Factors to Note

Industrial production in the United States increased 1.2% in the September-end quarter of 2019 compared with the prior-year quarter, per the Federal Reserve. This is likely to have favored Linde’s third-quarter earnings as it is a leading producer and distributor of industrial gases being utilized by various industries.

However, the business scenario was not favorable in Europe. Notably, in Germany, industrial production declined 4.3% in September compared with the year-ago comparable month, per TRADING ECONOMICS. The source added that the largest economy in the Eurozone area registered a year-over-year deterioration of 3.9% in industrial production in each of July and August of 2019.

Per TRADING ECONOMICS, the Eurozone's industrial production in July and August dropped 2.1% and 2.8%, respectively, from the year-ago comparable periods.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Linde this 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 (Buy).

Stocks Poised to Beat Estimates

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

Franco-Nevada Corporation (TSX:FNV) has an Earnings ESP of +0.34%. It currently sports a Zacks Rank #1. The company is scheduled to release earnings on Nov 11. You can see the complete list of today’s Zacks #1 Rank stocks here.

AC Immune SA (NASDAQ:ACIU) has an Earnings ESP of +420.00% and is a #3 Ranked player.

Charah Solutions, Inc (NYSE:CHRA) has an Earnings ESP of +6.25% and is also a #3 Ranked player.

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