Linde on Friday reported another impressive quarter, as the industrial gas supplier continues to demonstrate its reliability and value in a diversified stock portfolio. Revenue in the second quarter totaled $8.27 billion, a bit shy of the $8.32 expected by analysts, according to estimates compiled by LSEG. On annual basis, overall revenue was up 0.8%. Adjusted earnings per share (EPS) rose nearly 8% year over year to $3.85, topping expectations by 7 cents, LSEG data showed. Adjusted operating profit in three months ended June 30 was $2.42 billion, up 5.9% on an annual basis and ahead of the $2.36 billion estimate, according to FactSet. Linde Why we own it: The industrial gas supplier and engineering firm has a stellar track record of consistent earnings growth. Its exposure to a wide range of industries, such as health care and electronics, and geographies — paired with excellent executive leadership and disciplined capital management — has been a recipe for steady success that should continue. Competitors: Air Liquid and Air Products Most recent buy : May 2, 2024 Initiated : Feb. 18, 2021 Bottom line Linde’s hallmark consistency was on display in Friday’s earnings report, headlined by higher-than-expected profits per share for another quarter. Over the past five years, Linde has topped EPS estimates in every quarter, according to FactSet. Shares fell 1.4% on Friday — hardly cause for concern considering the carnage in the broader market. The S & P 500 was down more than 2%, as was the materials sector in which Linde resides. Linde is among the best-performing stocks in the group, a reflection of not only its results but its defensive nature in general. We’re not the only investors who have come to covet the company’s ability to deliver steady earnings growth regardless of the economic conditions. Among the highlights: A better-than-expected adjusted operating margin, which at 29.3% was up solidly year over year and compared with the first quarter. Linde’s largest geographic segment — the Americas, which covers its operations in North America, Latin America and South America — also exceeded estimates on the top and bottom lines. On the conference call, executives at the oxygen and hydrogen supplier told a compelling story, reminding investors that while their forward guidance assumes no pickup in economic activity, parts of their business are exposed to resilient end markets like food and beverage that aren’t highly dependent on industrial production. Indeed, Linde’s revenue for food and beverage business was up 8% year over year in the quarter, and CEO Sanjiv Lamba said he expects to see continued growth in that segment. It represented 10% of gas sales in the April-to-June period. LIN YTD mountain Linde’s year-to-date stock performance. Of course, some of Linde’s end markets like manufacturing are more cyclical, and analysts pressed management on whether the company would be able to deliver double-digit earnings expansion if…
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