Chart Industries (GTLS) Misses Q1 EPS by 92c; raises guidance
Chart Industries (NYSE: GTLS) reported Q1 EPS of ($0.52), $0.92 worse than the analyst estimate of $0.40. Revenue for the quarter came in at $537.9 million versus the consensus estimate of $463.53 million.
GUIDANCE:
Chart Industries sees FY2023 EPS of $5.50-$6.70, versus the consensus of $6.27. Chart Industries sees FY2023 revenue of $3.66-3.8 billion, versus the consensus of 3.56 billion.
Increasing our 2023 outlook and reiterating our 2024 adjusted EBITDA outlook.
Given the strong start to our synergy achievement, the continued demand in our commercial pipeline of the combined business, and our first quarter 2023 record backlog, we are raising our outlook for 2023 sales to be in the anticipated range of $3.66 billion to $3.80 billion (from the prior range of $3.65 billion to $3.80 billion), with associated adjusted EBITDA of $780 million to $810 million (from the prior range of $770 million to $810 million).
Our 2023 outlook for adjusted diluted EPS is in the expected range of $5.50 to $6.70 (unchanged from prior outlook) on approximately 47 million shares outstanding. Our 2023 outlook for free cash flow is in the anticipated range of $300 million to $350 million excluding any impacts from potential divestitures (unchanged from prior outlook), and our cash available for debt paydown is expected to be in the range of $275 million to $325 million (unchanged from prior outlook).
We expect to see the normal second quarter sequential increase in both Chart legacy and Howden’s business. Each quarter of a year typically represents approximately 25% of a full year for Howden. Regarding Big LNG projects, based on current customer schedules we expect to see a sequential increase in Big LNG sales and earnings in the second half 2023 compared to the first half 2023.
While our guidance does not include any new big LNG orders besides what is in backlog, we expect to book two to three additional Big LNG orders in 2023 (in addition to the first quarter 2023 Sempra Port Arthur work) and continue to expect ongoing Big LNG demand in the years ahead.
Additionally, we reiterate our 2024 adjusted EBITDA outlook of approximately $1.3 billion
For earnings history and earnings-related data on Chart Industries (GTLS) click here.