Chart Industries Inc GTLS

Chart Industries Earnings: On Track to Exceed Consensus in 2024 After Strong Quarter

Chart Industries' first-quarter results were strong, in our view. Sales were up 17%, EBITDA was up 73%, and adjusted operating margin reached 18%, up 620 basis points over last year’s level. Gross margin is at 33% on an adjusted basis, up 320 basis points year over year, and we see further upside to the mid-30s in the near term. The earnings trajectory, supported by management’s reiteration of 2024 guidance, supports substantial stock price upside, even after an 8% upward move intraday as of this writing. Management reaffirmed guidance for revenue at a midpoint of $4.85 billion and EBITDA at a midpoint of $1.24 billion; both data points are well above PitchBook consensus estimate of $4.6 billion and $1.17 billion, respectively. Our estimates remain $4.9 billion and $1.24 billion. We expect to maintain our $200 fair value estimate and narrow moat rating.