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Air Products (APD) Earnings & Sales Lag Estimates in Q3

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Air Products and Chemicals, Inc. (APD - Free Report) has logged earnings from continuing operations of $2.01 per share in third-quarter fiscal 2020 (ended Jun 30, 2020), down roughly 9% from $2.20 recorded in the year-ago quarter. The bottom line in the reported quarter was hurt by the impacts of the coronavirus outbreak. Earnings per share for the reported quarter also missed the Zacks Consensus Estimate of $2.05.

The industrial gases giant has delivered fiscal third-quarter revenues of $2,065.2 million, down 7.1% year over year. It also missed the Zacks Consensus Estimate of $2,083.6 million.

Pricing increased 2%, which was more than offset by 3% lower volume, 2% unfavorable currency, 9% unfavorable impact from the coronavirus pandemic and 4% lower energy pass-through.

Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise

Segment Highlights

Revenues in the Industrial Gases - America segment fell 11% year over year to $850 million due to lower volume, lower energy pass-through and unfavorable currency.

Sales in the Industrial Gases - Europe, Middle East, and Africa (EMEA) segment decreased 13% year over year to $430 million. Higher pricing was offset by unfavorable currency, lower energy pass-through and lower volume.

Sales in the Industrial Gases - Asia segment decreased 4% year over year to $652 million. The downside was due to lower volume and unfavorable currency.

Financials

Air Products ended the quarter with cash and cash equivalents of $3,921.4 million, up 45.4% year over year. Long-term debt was up 139.6% year over year to $7,073.2 million.

Net cash from operating activities was $2,013.2 million for the nine months ended Jun 30, 2020.

Outlook

Air Products said that it will continue to generate value for shareholders over the long term and invest in world-scale, sustainability-focused projects, notwithstanding the challenging environment.

Price Performance

The company’s shares have gained 31.5% in the past year against the industry’s 9.7% decline.

Zacks Rank & Stocks to Consider

Air Products currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Royal Gold, Inc. (RGLD - Free Report) , Agnico Eagle Mines Ltd. (AEM - Free Report) andHarmony Gold Mining Company Ltd. (HMY - Free Report) .

Royal Gold has a projected earnings growth rate of 62.1% for the current year. The company’s shares have gained 13.5% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Agnico Eagle has a projected earnings growth rate of 73.2% for the current year. The stock has gained around 30% in a year. It currently flaunts a Zacks Rank of 1.

Harmony Gold has an expected earnings growth rate of 264.3% for 2020. The company’s shares have rallied 154.8% in the past year.It is presently a Zacks #2 Ranked (Buy) player.

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