Chart Industries (NASDAQ: GTLS) reported Q2 EPS of $0.55, $0.11 better than the analyst estimate of $0.44. Revenue for the quarter came in at $319.9 million versus the consensus estimate of $299.73 million.

• Orders of $360.3 million, a 12% sequential increase over the first quarter of 2018 and Chart’s sixth consecutive quarter of sequential growth. Orders increased 43% over the second quarter of 2017, with 6% organic growth.
• Booked $28 million order for Hudson Products (Energy & Chemicals) air cooled heat exchangers for a large LNG project.
• Sales of $319.9 million, a sequential increase of 14% over the first quarter of 2018, and 34% over the second quarter of 2017, with 14% organic growth.
• Reported EPS of $0.38 and adjusted EPS of $0.55, reflecting margin leverage resulting from completed restructuring actions and continued order and sales strength.
• Increased full year revenue and EPS guidance range to $1.20 billion to $1.25 billion and $1.85 to $2.05 per diluted share, respectively.

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 $1.20 billion to $1.25 billion for the full year of 2018 compared to prior sales guidance of $1.15 to $1.20 billion. We expect full year adjusted earnings per diluted share (non-GAAP) to be in the range of $1.85 to $2.05 per share, on approximately 32.0 million weighted average shares outstanding. Our prior full year adjusted earnings per diluted share guidance was $1.75 to $2.00. 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 approximately 27%, which is unchanged from our prior guidance. In the second quarter of 2018, our effective tax rate was 27.6%, bringing the year to date rate to 27.3%. We continue to expect our capital expenditures for 2018 will be in the range of $35 million to $45 million.

GUIDANCE:

Chart Industries sees FY2018 EPS of $1.85-$2.05, versus the consensus of $1.88. Chart Industries sees FY2018 revenue of $1.2-1.25 billion, versus the consensus of $1.2 billion.

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