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Air Products (APD) to Post Q4 Earnings: What's in the Offing?
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Air Products and Chemicals, Inc. (APD - Free Report) is slated to release fourth-quarter fiscal 2020 results ahead of the bell on Nov 11. The company is expected to have gained from new projects and productivity initiatives in the quarter. However, the impacts of the coronavirus pandemic and volume pressure are likely to get reflected in its results.
The industrial gases giant missed the Zacks Consensus Estimate for earnings in three of the trailing four quarters while beat once. In this timeframe, it delivered a negative earnings surprise of 0.11%, on average. The company delivered a negative earnings surprise of 1.95% in the last reported quarter.
The company’s shares have gained 30.5% in the past year against the industry’s 1.7% decline.
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for Air Products’ fiscal fourth-quarter revenues is currently pegged at $2,269 million, suggesting a decline of 0.6% year over year.
The Zacks Consensus Estimate for revenues for the Industrial Gases — Americas segment is currently pegged at $907 million, calling for a decline of 3.2% year over year. The consensus mark for revenues in the Industrial Gases — Asia segment is pegged at $739 million, which suggests 0.9% year-over-year growth.
The Zacks Consensus Estimate for revenues in the Industrial Gases — EMEA segment stands at $468 million, indicating a 4.3% year-over-year decline.
The consensus mark for revenues for the Industrial Gases — Global segment is pegged at $74 million, which indicates a decline of 8.6% year over year.
Some Factors at Play
Air Products’ productivity actions, investments in high-return projects and benefits of acquisitions are expected to get reflected on fiscal fourth-quarter results. New projects are likely to have contributed to its volumes.
Moreover, Air Products is boosting productivity to improve its cost structure. It is seeing the positive impacts of its productivity actions. Benefits from additional productivity and cost improvement programs are likely to have supported margins in the to-be-reported quarter.
Air Products also has been benefiting from higher pricing over the past several quarters and the same is expected to have continued in the fiscal fourth quarter.
However, the company’s results are likely to reflect the unfavorable impacts from the coronavirus pandemic and weak merchant volumes. Air Products faced headwinds from lower merchant volumes in the Americas and EMEA in the fiscal third quarter. Some volume pressure in these regions is likely to have continued in the fiscal fourth quarter amid disruptions from the pandemic.
The impact of unfavorable currency movements is also expected to get reflected on sales and earnings in the quarter to be reported.
Air Products and Chemicals, Inc. Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for Air Products this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Air Products is -2.03%. The Zacks Consensus Estimate for earnings for the fiscal fourth quarter is currently pegged at $2.23. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Air Products currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Cabot Corporation (CBT - Free Report) , scheduled to release earnings on Nov 23, has an Earnings ESP of +40.22% and carries a Zacks Rank #3.
Deere & Company (DE - Free Report) , scheduled to release earnings on Nov 25, has an Earnings ESP of +9.76% and carries a Zacks Rank #3.
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Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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Air Products (APD) to Post Q4 Earnings: What's in the Offing?
Air Products and Chemicals, Inc. (APD - Free Report) is slated to release fourth-quarter fiscal 2020 results ahead of the bell on Nov 11. The company is expected to have gained from new projects and productivity initiatives in the quarter. However, the impacts of the coronavirus pandemic and volume pressure are likely to get reflected in its results.
The industrial gases giant missed the Zacks Consensus Estimate for earnings in three of the trailing four quarters while beat once. In this timeframe, it delivered a negative earnings surprise of 0.11%, on average. The company delivered a negative earnings surprise of 1.95% in the last reported quarter.
The company’s shares have gained 30.5% in the past year against the industry’s 1.7% decline.
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for Air Products’ fiscal fourth-quarter revenues is currently pegged at $2,269 million, suggesting a decline of 0.6% year over year.
The Zacks Consensus Estimate for revenues for the Industrial Gases — Americas segment is currently pegged at $907 million, calling for a decline of 3.2% year over year. The consensus mark for revenues in the Industrial Gases — Asia segment is pegged at $739 million, which suggests 0.9% year-over-year growth.
The Zacks Consensus Estimate for revenues in the Industrial Gases — EMEA segment stands at $468 million, indicating a 4.3% year-over-year decline.
The consensus mark for revenues for the Industrial Gases — Global segment is pegged at $74 million, which indicates a decline of 8.6% year over year.
Some Factors at Play
Air Products’ productivity actions, investments in high-return projects and benefits of acquisitions are expected to get reflected on fiscal fourth-quarter results. New projects are likely to have contributed to its volumes.
Moreover, Air Products is boosting productivity to improve its cost structure. It is seeing the positive impacts of its productivity actions. Benefits from additional productivity and cost improvement programs are likely to have supported margins in the to-be-reported quarter.
Air Products also has been benefiting from higher pricing over the past several quarters and the same is expected to have continued in the fiscal fourth quarter.
However, the company’s results are likely to reflect the unfavorable impacts from the coronavirus pandemic and weak merchant volumes. Air Products faced headwinds from lower merchant volumes in the Americas and EMEA in the fiscal third quarter. Some volume pressure in these regions is likely to have continued in the fiscal fourth quarter amid disruptions from the pandemic.
The impact of unfavorable currency movements is also expected to get reflected on sales and earnings in the quarter to be reported.
Air Products and Chemicals, Inc. Price and EPS Surprise
Air Products and Chemicals, Inc. price-eps-surprise | Air Products and Chemicals, Inc. Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for Air Products this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Air Products is -2.03%. The Zacks Consensus Estimate for earnings for the fiscal fourth quarter is currently pegged at $2.23. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Air Products currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Maverix Metals Inc. , expected to release earnings on Nov 10, has an Earnings ESP of +28.57% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot Corporation (CBT - Free Report) , scheduled to release earnings on Nov 23, has an Earnings ESP of +40.22% and carries a Zacks Rank #3.
Deere & Company (DE - Free Report) , scheduled to release earnings on Nov 25, has an Earnings ESP of +9.76% and carries a Zacks Rank #3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>