Chart Industries (NYSE:GTLS) saw a significant decline in its stock price, closing at nearly a five-month low in Friday’s trading session. The company reported disappointing Q3 adjusted earnings and revenues, and also lowered its full-year revenue guidance, which fell below analyst consensus.

Q3 Loss and Revenue Figures

During the third quarter, Chart Industries (GTLS) experienced a dramatic swing from a net profit of $41.2 million, or $0.98 per share, in the same period last year, to a Q3 GAAP loss of $3.4 million, or a loss of $0.07 per share. Despite the loss, revenues still managed to increase by nearly 10% year-over-year, reaching $897.9 million.

The company attributed its record Q3 EBITDA of $169.3 million to the high performance of its business. This, in turn, drove a record EBITDA margin of 18.9%. Adjusting for one-time costs primarily related to the Howden deal and integration costs, the adjusted EBITDA was $195 million, resulting in an adjusted EBITDA margin of 21.7%. This represents a significant improvement compared to the year-ago pro forma EBITDA margin of 17.3%.

Sale of American Fan Business

In addition to its financial results, Chart Industries (GTLS) also announced the sale of its American Fan business to Fairbanks Morse Defense for $111 million in cash. This strategic move allows the company to streamline its operations and focus on its core business areas.

Adjusted Guidance for FY 2023 and FY 2024

Despite the disappointing Q3 performance, Chart Industries (GTLS) maintained its earnings guidance for FY 2023, projecting earnings of $6.05 to $6.25 per share. This is in line with the analyst consensus estimate of $6.28 per share. However, the company revised its full-year revenue outlook, now anticipating revenue between $3.45 billion and $3.5 billion, down from its previous guidance of $3.66 billion to $3.8 billion. This new forecast is below the consensus estimate of $3.62 billion.

Looking ahead to FY 2024, Chart Industries (GTLS) reaffirmed its adjusted earnings forecast of at least $14.00 per share. The company also expects adjusted EBITDA of $1.3 billion, sales of approximately $5.1 billion, and free cash flow ranging from $575 million to $625 million.

Despite the current challenges faced by Chart Industries (GTLS), the company remains committed to its long-term vision and growth strategies. By focusing on its core business areas and leveraging its expertise, Chart Industries aims to overcome the current setbacks and continue building value for its stakeholders.

Conclusion

The recent decline in Chart Industries’ stock price, along with the disappointing Q3 results and revised revenue guidance, highlights the challenges faced by the company. However, with its strong focus on operational efficiency and strategic moves such as the sale of its non-core business, Chart Industries is positioning itself for future success. Investors and traders should closely monitor the company’s progress as it navigates these challenges and works towards achieving its long-term financial goals.