What happened
It's a dour day in the markets with military action escalating in Ukraine, but not every stock is seeing a downturn. Chart Industries (GTLS 0.13%), a manufacturer of equipment used in energy and industrial gas applications, announced strong fourth-quarter 2021 earnings before the bell this morning, and investors continue to celebrate the report.
As of 1:02 p.m. ET on Thursday, shares of Chart Industries are up 11.5%.
So what
Exceeding analysts' sales and earnings estimates, Chart Industries reported $378.9 million on the top line and $0.73 in adjusted earnings per share (EPS) for the fourth quarter of 2021. The consensus among analysts was that the company would report $378.4 million and $0.69 in revenue and adjusted EPS, respectively.
It wasn't merely the company's success in surpassing the Street's expectations that's powering investors' excitement today, though; the prospect of growth in the coming year is also boosting enthusiasm.
Image source: Getty Images.
Chart Industries reported quarterly company records for orders and backlog in the recently completed quarter. Consequently, it ended 2021 with a record $1.68 billion in orders, a 39% increase over the end of 2020, and a backlog of $1.19 billion, representing a 47% increase over the $810 million it had in backlog at the end of 2020.
With the company securing impressive growth in orders and backlog, management reiterated 2022 guidance: revenue of $1.7 billion to $1.85 billion and adjusted EPS of $5.25 to $6.50. For context, Chart Industries reported 2021 sales and adjusted EPS of $1.32 billion and $2.84, respectively.
Now what
Although management sees growth in revenue and adjusted EPS in the coming year, investors will want to keep a close eye on cash from operations and free cash flow -- both of which turned negative in 2021 and are expected to remain under pressure in 2022 as the company deals with supply chain challenges.
