Praxair (PX) is expected to report Q2 earnings Wednesday, July 23 before market open with a conference call scheduled for 11:00 am ET.
The consensus estimate is $1.06 for EPS and $2.72B for revenue, according to First Call.
Keybanc has a positive bias toward the quarter and are looking for EPS of $1.08. The continuation of strong growth in global energy and infrastructure projects and acceleration of demand in Asia gives Keybanc good confidence in the quarter. The firm also points out the lack of petrochemical exposure as another positive as rising oil prices have recently impacted the bulk of the specialty chemical industry. Looking forward, Keybanc's 2008 EPS estimate stands at $4.30 and it suspects that there is upside to management's guidance range of $4.10 to $4.25. The firm has a high degree of confidence that Praxair can drive strong earnings growth in 2008 benefiting from a strong backlog of projects, acceleration in on-site projects, and favorable pricing and product mix. Keybanc's Buy rating reflects its belief that Praxair remains a compelling long-term growth story.