Chart Industries (NASDAQ: GTLS) reported Q1 EPS of $0.39, $0.04 worse than the analyst estimate of $0.43. Revenue for the quarter came in at $289.3 million versus the consensus estimate of $290.3 million.

• Booked $135 million equipment order for Venture Global’s Calcasieu Pass LNG export terminal project and a $20 million order for Golar’s floating LNG Gimi project in Q1 2019. Won a $30 million order for another big LNG project this week (Q2 2019).
• Finalized long term agreements with two key LNG fueling system customers for over the road trucking applications, and a Memorandum of Understanding (“MOU”) with the Indian Oil Corporation Ltd. (“IOCL”) to develop LNG infrastructure for transport, storage and liquefaction in India.
• First quarter 2019 orders of $461.2 million increased 60% over the first quarter of 2018 (51% organically) reflecting an expected ramp in big LNG order activity, and continued strength in all three segments’ base businesses.
• Took restructuring actions that will result in anticipated additional annual operating income of $6.5 million, furthering our year to date margin expansion execution beyond pricing and sourcing.
• Reported EPS of $0.03 versus $0.13 in the first quarter of 2018. Adjusted EPS of $0.39, a 117% increase over the first quarter of 2018 adjusted EPS of $0.18.
• Announced Chart Investor Day on November 14, 2019 in La Crosse, Wisconsin.
• Increased 2019 revenue and adjusted EPS guidance. 2019 full year revenue guidance is $1.29 billion to $1.34 billion and adjusted EPS guidance is $2.70 to $3.05 (inclusive of 2019 portion of Calcasieu Pass and Golar Gimi projects).
• Increased 2019 big LNG order pipeline expectations to $600 million to $800 million from $400 million to $500 million.

“With increasing activity related to big LNG and continued order strength across the base business, we are at near record backlog levels,” said Jill Evanko, Chart’s President and CEO. “As a result of the combination of these new orders, our first quarter results in line with our expectations, and our self-help margin expansion actions, we have increased our sales and adjusted earnings per share full year 2019 guidance.”

“We are ramped up to begin the manufacturing for the big LNG project orders announced, as well as others in the pipeline. We look forward to sharing our facility and team at our Investor Day on November 14, 2019 in La Crosse, Wisconsin,” concluded Jill Evanko.

GUIDANCE:

Chart Industries sees FY2019 EPS of $2.85, versus the consensus of $2.78. Chart Industries sees FY2019 revenue of $1.31 billion, versus the consensus of $1.29 billion.

Our full year 2019 guidance assumes LNG project revenue in 2019 from Calcasieu and Golar Gimi of $28 million to $30 million, which is subject to project timing. Our guidance does not include the additional 2019 revenue or earnings per share from the $30 million order we won this week, as we are working with Bechtel on project timing. Sales, inclusive of the Calcasieu Pass and Gimi projects, are expected to be in the range of $1.29 billion to $1.34 billion for the full year of 2019. This is an increase compared to prior 2019 guidance of $1.26 billion to $1.31 billion. We expect full year adjusted earnings per diluted share to be in the range of $2.70 to $3.05 per share, on approximately 32.5 million weighted average shares outstanding, an increase from our prior guidance of $2.50 to $2.85 per share. This excludes any restructuring costs and transaction-related costs, and as such is a non-GAAP measure. We expect our effective tax rate to be approximately 22% to 23%. Our capital expenditures for 2019 are expected to be in the range of $35 million to $40 million, which includes the build out of an LNG fuel systems production line in Europe. Our weighted average shares projection excludes any potential future dilution impact associated with our convertible notes.

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