NEW YORK - Chart Industries Inc (NYSE:GTLS) shares plunged 11% on Friday after the industrial gas equipment maker reported second quarter earnings that missed expectations and cut its full-year outlook.
The company posted adjusted earnings per share of $2.18, falling short of analysts' estimates of $2.47. Revenue came in at $1.04 billion, below the consensus forecast of $1.11 billion.
Chart Industries also lowered its 2024 guidance, now expecting full-year earnings per share of $10.75 to $11.75, down from its previous outlook of $12.00 to $14.00. The company reduced its revenue forecast to a range of $4.45 billion to $4.60 billion, compared to its prior projection of $4.7 billion to $5.0 billion.
"While we delivered record sales and margins in the quarter, our results fell short of expectations due to timing of sales recognition for larger projects in our backlog," said Jill Evanko, Chart's CEO and President.
The company cited delays in revenue recognition on some major projects and negative foreign exchange impacts as key factors behind the guidance cut. However, Evanko noted Chart's order backlog remains strong at $4.4 billion.
Despite the disappointing quarter, Chart maintained its medium-term targets, including mid-teens organic revenue growth through 2026 and gross profit margins in the mid-30% range. The company also reiterated its goal of achieving a net leverage ratio between 2.0 and 2.5.
Chart Industries manufactures equipment used in the production, storage and distribution of liquefied natural gas and other industrial gases. The stock was trading around $160 following the earnings release, down from over $180 prior to the report.
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