Linde raises EPS guidance after Q2 profits, Enbridge net income falls


  • Linde plc (NYSE: LIN) sales surged 19% to US$7.6 billion in the second quarter, 2021. Its adjusted operating profit was US$1.8 billion, up 39% year-over-year.
  • Enbridge Inc (NYSE: ENB) revenue rose 38% year-over-year to CA$10.9 billion; net income declined 15% to CA$1.39 billion in the second quarter, 2021.
  • Linde stock was up 0.45% at 8:42 am ET, and Enbridge stock rose 0.33% at 8:46 am ET.

Linde plc (NYSE: LIN) sales surged 19% to US$7.6 billion YoY, while Enbridge Inc (ENB) revenue rose 38% year-over-year to CA$10.9 billion in the second quarter ended June 30, 2021, the companies said in their earnings statements on Friday.

Linde stock rose 0.45% to US$300.81 in the pre-market session at 8:42 am ET, and the Enbridge stock went up by 0.33% to CA$39.76 at 8:46 am ET.

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Source: Pixabay.

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Linde’s operating profit was US$1.1 billion, and adjusted operating profit was US$1.8 billion, an increase of 39% YoY. Its sales from America were US$3.1 billion (up 25%), EMEA US$1.9 billion (up 29%), APAC US$1.5 billion (up 19%), and engineering US$646 million (down 20%) YoY.

Linde booked a net income of US$841 million, an 84% increase from US$458 million the previous year. Its diluted earnings per share were US$ 1.60 compared to US$ 0.87 in Q2, 2020, and adjusted EPS was US$ 2.70, up 42%. 

Its total operating profit for Q2 was US$ 1,142 million, and adjusted operating profit was US$ 1,837 million, 39% up from the previous year due to higher price and substantial volumes and continued productivity initiatives in all segments.

Its operating profit margin was 15.1%, and the adjusted operating profit margin was 24.2%. Free cash flow for the quarter increased to US$ 1.1 billion compared to US$ 981 million in Q2, the previous year.

The company has revised its full-year 2021 adjusted EPS guidance to US$ 10.10 - US$ 10.30, increasing 23% to 25% from the prior year.

This global industrial gas and engineering company has a market capitalization of US$ 155.7 billion and a P/E ratio of 54.45 and pays a dividend with a yield of 1.43%.

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Enbridge net income declined 15% to CA$1.39 billion from CA$1.65 billion in the previous year June quarter, and earnings per share diluted were CA$ 0.69 compared to CA$ 0.82 in a year-ago period.

This pipeline network and midstream asset company has five segments. The transportation segment contributed CA$3,353 million in revenue, storage and other revenues were CA$151 million, gas gathering and processing revenue were CA$10 million, gas distribution revenue was CA$ 725 million, and electricity and transmission revenue were CA$ 55 million.

Its commodity sales were CA$ 6,334 million. Its distributable cash flow (DCF) was CA$ 2.5 billion, a 4% increase year-over-year or CA$ 1.24 per common share. The EBITDA was CA$ 3.3 billion.

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The company guidance for full-year 2021 for EBITDA and DCF to be between CA$ 13.9 to CA$ 14.3 billion and CA$ 4.70 to CA$ 5.00 per share, respectively.

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.