Chart Industries Slides On Earnings Miss, Guidance Cut — Market Talk

Chart Industries reported $1.04 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 14.6%. EPS of $2.18 for the same period compares to $1.19 a year ago.

The reported revenue represents a surprise of -6.43% over the Zacks Consensus Estimate of $1.11 billion. With the consensus EPS estimate being $2.57, the EPS surprise was -15.18%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Chart Industries performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Backlog - Cryo Tank Solutions

  : $358.20 million versus the three-analyst average estimate of $354.97 million.

• Backlog - Heat Transfer Systems

  : $1.71 billion versus $1.65 billion estimated by three analysts on average.

• Backlog - Specialty Products

  : $1.81 billion versus the three-analyst average estimate of $1.79 billion.

• Backlog - Repair, Service & Leasing

  : $562.70 million versus $619.65 million estimated by three analysts on average.

• Orders - Cryo Tank Solutions

  : $159 million compared to the $166.70 million average estimate based on three analysts.

• Orders - Repair, Service & Leasing

  : $312.40 million compared to the $343.61 million average estimate based on three analysts.

• Orders - Heat Transfer Systems

  : $269.60 million compared to the $253.59 million average estimate based on three analysts.

• Orders - Specialty Products

  : $423.70 million compared to the $425.55 million average estimate based on three analysts.

• Sales- Cryo Tank Solutions

  : $165.50 million versus $175.04 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +8.4% change.

• Sales- Repair, Service & Leasing

  : $360.50 million versus $339.94 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +20.7% change.

• Sales- Specialty Products

  : $277.60 million compared to the $306.84 million average estimate based on four analysts. The reported number represents a change of +17.3% year over year.

• Sales- Heat Transfer Systems

  : $236.70 million compared to the $295.70 million average estimate based on four analysts. The reported number represents a change of +0.3% year over year.

View all Key Company Metrics for Chart Industries here>>>

Shares of Chart Industries have returned +6% over the past month versus the Zacks S&P 500 composite's -0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Zacks Investment Research

Chart Industries came out with quarterly earnings of $2.18 per share, missing the Zacks Consensus Estimate of $2.57 per share. This compares to earnings of $1.19 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -15.18%. A quarter ago, it was expected that this equipment maker for the energy sector would post earnings of $1.88 per share when it actually produced earnings of $1.49, delivering a surprise of -20.74%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Chart Industries, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $1.04 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate by 6.43%. This compares to year-ago revenues of $908.1 million. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Chart Industries shares have added about 12.9% since the beginning of the year versus the S&P 500's gain of 14.2%.

What's Next for Chart Industries?

While Chart Industries has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Chart Industries: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $3.33 on $1.23 billion in revenues for the coming quarter and $11.56 on $4.68 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Xometry , another stock in the same industry, has yet to report results for the quarter ended June 2024. The results are expected to be released on August 8.

This marketplace for on-demand manufacturing is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Xometry's revenues are expected to be $128.01 million, up 15.3% from the year-ago quarter.

Zacks Investment Research

Record Q2 2024 results with double-digit sales and margin growth, robust order intake, and strong free cash flow. Guidance for 2024 raised, with continued margin expansion and a $23B commercial pipeline.

Original document: Chart Industries, Inc. [GTLS] Slides Release — Aug. 2 2024