Linde's post-earnings slide is a buying opportunity. Here's why
📰 source: cnbc_investing · 💼 business
linde shares fell more than 5.5% on friday, on pace for worst day since april 2025, despite beating estimates. q2 revenue rose 9.3% to $9.29 billion, ahead of the $8.99 billion consensus, and adjusted eps came in at $4.50, beating by 2 cents.
the selling pressure came from lincare, linde's home healthcare unit, which dragged adjusted operating margins down to 29.5%, below expectations. but electronics sales jumped 18% year over year on semiconductor demand from ai buildout. linde plans to spend $1 billion on a phoenix supply complex, and its taiwan joint venture will spend $800 million. backlog reached $11.1 billion, up from $9.9 billion.
management guided q3 eps to $4.45-$4.55, midpoint $4.50, slightly below consensus. full-year eps low end was raised to $17.70, high end unchanged at $17.90. linde also upped capex outlook to $5.5-$6 billion. ceo sanjiv lamba said he expects sequential improvement in lincare and is evaluating its strategic fit.
why it matters: linde's selloff on healthcare unit headwinds masks ai-driven electronics growth, creating entry point for long-term investors.
source: cnbc_investing
sentiment: +0.60 · impact: 0.50