Movement Alert|Linde PLC Falls 6.97% in Regular Trading, Q2 Earnings Beat but Full-Year Guidance Upper End Trails Consensus

Market Focus07-31

On July 31, Linde PLC declined 6.97% in regular trading, trading at 480.0 USD/share, with turnover of $373 million. The sell-off was triggered by the company's full-year and Q3 earnings guidance falling short of market expectations, despite a solid Q2 beat.

Linde reported Q2 adjusted EPS of $4.50, up 10.02% year-over-year, slightly beating the consensus estimate of $4.48. Revenue came in at $9.3 billion, up 9.3% year-over-year, exceeding the $8.989 billion estimate. However, the company updated its full-year adjusted EPS guidance to $17.70–$17.90, with the upper end still below the analyst consensus of $17.91. Q3 EPS guidance midpoint of $4.50 also fell short of the $4.54 expectation. The market's cautious repricing of forward guidance was the primary driver of the decline.

Additionally, the company announced approximately $1 billion in investment to expand a semiconductor customer's gas production facility in Phoenix, supplying ultra-high-purity nitrogen, oxygen, and argon. The CEO noted in the earnings call that the electronics business pipeline remains healthy, with the majority of projects originating from the US market.

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