Chart Industries (GTLS) Tops Q1 EPS by 4c, Beats on Revenues; Boosts FY18 EPS Mid-Point Outlook Above Consensus

Chart Industries (NASDAQ: GTLS) reported Q1 EPS of $0.23, $0.04 better than the analyst estimate of $0.19. Revenue for the quarter came in at $279.7 million versus the consensus estimate of $263.41 million.

• Orders of $321.1 million sequentially increased 13% over the fourth quarter of 2017, and increased 35% organically compared to the first quarter of 2017 with each segments’ orders increasing both sequentially and year-over-year.
• Sales of $279.7 million increased 37% from the first quarter of 2017 (15.8% organically), and decreased 9% from the fourth quarter of 2017, representing typical seasonality.
• Reported EPS of $0.18 and adjusted EPS of $0.23, reflecting improved operational productivity and an effective tax rate of 26.7%.
• Gross margin as a percent of sales of 27.6% increased sequentially from the fourth quarter of 2017 gross margin as a percent of sales of 27.1%, and from 27.3% in the first quarter of 2017 reflecting completed restructuring benefits.
• A strategic review of the oxygen-related product lines within our Biomedical segment is underway.

OUTLOOK

Our full year 2018 guidance includes the impact from the revenue recognition accounting standard change which was adopted effective January 1, 2018, and which we expect to be immaterial on a full year basis. Sales guidance is expected to be in the range of $1.15 billion to $1.20 billion for the full year of 2018. We expect full year adjusted earnings per diluted share (non-GAAP) to be in the range of $1.75 to $2.00 per share, on approximately 31.7 million weighted average shares outstanding. Our prior full year adjusted earnings per diluted share guidance was $1.65 to $1.90. This excludes any restructuring costs and transaction-related costs, and assumes continued ownership of all assets for the entire calendar year, and as such is a non-GAAP measure. We expect our effective tax rate, inclusive of benefits from the Tax Cuts and Jobs Act, to be 27%, as compared to our prior guidance of a range of 27% to 29%. We expect our capital expenditures for 2018 will be in the range of $35 million to $45 million.

GUIDANCE:

Chart Industries sees FY2018 EPS of $1.75-$2.00, versus the consensus of $1.82. Chart Industries sees FY2018 revenue of $1.15-1.2 billion.

For earnings history and earnings-related data on Chart Industries (GTLS) click here.

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