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Air Products' (APD) Q4 Earnings Top Estimates on Higher Prices
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Air Products and Chemicals, Inc. (APD - Free Report) logged fourth-quarter fiscal 2023 (ended Sep 30, 2023) earnings from continuing operations of $3.08 per share, up from $2.56 recorded in the year-ago quarter. The bottom line was driven by higher pricing and increased equity affiliates' income that more than offset higher costs.
Barring one-time items, earnings per share were $3.15. It beat the Zacks Consensus Estimate of $3.11.
The industrial gases giant generated revenues of $3,191.3 million, down around 11% year over year. The figure missed the Zacks Consensus Estimate of $3,307.5 million. Higher prices (up 2%) and favorable currency swings were more than offset by lower energy cost pass-through.
Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise
Revenues in the Americas segment were down 12% year over year to $1,351.3 million. The figure was higher than our estimate of $1,310.6 million. Sales declined as higher volumes and pricing were more than offset by lower energy cost pass-through.
Revenues in the Europe segment declined 18% year over year to $711.7 million. It was lower than our estimate of $859.4 million. Stable volume and favorable currency were more than offset by lower energy cost pass-through and lower pricing.
Revenues in the Asia segment fell 7% year over year to $801.5 million. It was lower than our estimate of $903.3 million. Increased pricing and higher energy cost pass through were more than offset by reduced volumes and unfavorable currency.
FY23 Results
Earnings from continuing operations for fiscal 2023 was $10.30 per share, compared with earnings of $10.08 a year ago. Revenues were $12.6 billion for the full year, down around 1% year over year.
Financials
Air Products ended the fiscal 2023 with cash and cash items of $1,617 million, down about 3% year over year. Long-term debt was up around 44% year over year to $9,280.6 million.
Outlook
Air Products expects fiscal 2024 adjusted earnings per share of $12.80-$13.10, indicating 13% growth from the prior year’s adjusted earnings at the midpoint. For the first quarter of fiscal 2024, the company expects adjusted earnings per share in the range of $2.90-$3.05, suggesting a rise of 13% at the midpoint from the year-ago quarter.
Air Products expects capital expenditures in the range of $5 billion to $5.5 billion for fiscal 2024.
Price Performance
The company’s shares have gained 3.6% in the past year compared with an 11.3% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
APD currently has a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Koppers Holdings Inc. (KOP - Free Report) , WestRock Company (WRK - Free Report) and The Andersons Inc. (ANDE - Free Report) .
Koppers has a trailing four-quarter earnings surprise of roughly 21.7%, on average. KOP shares have rallied around 34% in a year.
In the past 60 days, the Zacks Consensus Estimate for WestRock’s current fiscal year has been revised upward by 5.2%. WRK, carrying a Zacks Rank #2, beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 30.7%. The company’s shares have gained 3% in the past year. The company’s shares have gained 8% in the past year.
Andersons currently carries a Zacks Rank #1. The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward over the past 60 days.
Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average. ANDE shares have rallied around 38% in a year.
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Air Products' (APD) Q4 Earnings Top Estimates on Higher Prices
Air Products and Chemicals, Inc. (APD - Free Report) logged fourth-quarter fiscal 2023 (ended Sep 30, 2023) earnings from continuing operations of $3.08 per share, up from $2.56 recorded in the year-ago quarter. The bottom line was driven by higher pricing and increased equity affiliates' income that more than offset higher costs.
Barring one-time items, earnings per share were $3.15. It beat the Zacks Consensus Estimate of $3.11.
The industrial gases giant generated revenues of $3,191.3 million, down around 11% year over year. The figure missed the Zacks Consensus Estimate of $3,307.5 million. Higher prices (up 2%) and favorable currency swings were more than offset by lower energy cost pass-through.
Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise
Air Products and Chemicals, Inc. price-consensus-eps-surprise-chart | Air Products and Chemicals, Inc. Quote
Segment Highlights
Revenues in the Americas segment were down 12% year over year to $1,351.3 million. The figure was higher than our estimate of $1,310.6 million. Sales declined as higher volumes and pricing were more than offset by lower energy cost pass-through.
Revenues in the Europe segment declined 18% year over year to $711.7 million. It was lower than our estimate of $859.4 million. Stable volume and favorable currency were more than offset by lower energy cost pass-through and lower pricing.
Revenues in the Asia segment fell 7% year over year to $801.5 million. It was lower than our estimate of $903.3 million. Increased pricing and higher energy cost pass through were more than offset by reduced volumes and unfavorable currency.
FY23 Results
Earnings from continuing operations for fiscal 2023 was $10.30 per share, compared with earnings of $10.08 a year ago. Revenues were $12.6 billion for the full year, down around 1% year over year.
Financials
Air Products ended the fiscal 2023 with cash and cash items of $1,617 million, down about 3% year over year. Long-term debt was up around 44% year over year to $9,280.6 million.
Outlook
Air Products expects fiscal 2024 adjusted earnings per share of $12.80-$13.10, indicating 13% growth from the prior year’s adjusted earnings at the midpoint. For the first quarter of fiscal 2024, the company expects adjusted earnings per share in the range of $2.90-$3.05, suggesting a rise of 13% at the midpoint from the year-ago quarter.
Air Products expects capital expenditures in the range of $5 billion to $5.5 billion for fiscal 2024.
Price Performance
The company’s shares have gained 3.6% in the past year compared with an 11.3% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
APD currently has a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Koppers Holdings Inc. (KOP - Free Report) , WestRock Company (WRK - Free Report) and The Andersons Inc. (ANDE - Free Report) .
Koppers has a projected earnings growth rate of 7.5% for the current year. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Koppers has a trailing four-quarter earnings surprise of roughly 21.7%, on average. KOP shares have rallied around 34% in a year.
In the past 60 days, the Zacks Consensus Estimate for WestRock’s current fiscal year has been revised upward by 5.2%. WRK, carrying a Zacks Rank #2, beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 30.7%. The company’s shares have gained 3% in the past year. The company’s shares have gained 8% in the past year.
Andersons currently carries a Zacks Rank #1. The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward over the past 60 days.
Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average. ANDE shares have rallied around 38% in a year.