We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Air Products' (APD) Earnings Lag Estimates in Q3, Sales Beat
Read MoreHide Full Article
Air Products and Chemicals, Inc. (APD - Free Report) logged earnings from continuing operations of $2.36 per share in third-quarter fiscal 2021 (ended Jun 30, 2021), up 17% from $2.01 recorded in the year-ago quarter.
Adjusted earnings per share (EPS) in the reported quarter were $2.31, which missed the Zacks Consensus Estimate of $2.39.
In the quarter under review, the industrial gases giant delivered revenues of $2,604.7 million, up around 26% year over year. The figure beat the Zacks Consensus Estimate of $2,562.8 million.
Pricing increased 2% along with 6% favorable currency and 6% higher energy pass-through. Volumes were higher as recovery from the pandemic, new plants and acquisitions more than offset reduced contributions from the Lu'An facility in China.
Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise
Revenues in the Industrial Gases - America segment were up 25% year over year to $1,063 million. The upside was driven by merchant pandemic recovery, higher pricing, higher energy cost pass-through, higher volumes, higher medical oxygen sales in South America and favorable currency.
Revenues in the Industrial Gases - Europe, Middle East, and Africa (EMEA) segment surged 45% year over year to $623 million. Higher volumes led by pandemic recovery and acquisitions as well as favorable currency drove results in the segment. The segment also witnessed higher pricing and energy pass-through.
Revenues in the Industrial Gases - Asia segment rose 15% year over year to $752 million. The upside can be attributed to favorable currency, higher volumes and higher pricing. Increased merchant volumes and new plants were partly offset by reduced contributions from Lu'An.
Financials
Air Products ended fiscal third quarter with cash and cash equivalents of around $4,291.6 million, up 9.4% year over year. Long-term debt was down 2.6% year over year to $6,892.2 million.
Outlook
Air Products expects adjusted EPS of $8.95-$9.05 for fiscal 2021 and $2.44-$2.54 for the fourth quarter of fiscal 2021. The company expects capital spending of roughly $2.5 billion for the fiscal, excluding the Jazan transaction.
Price Performance
The company’s shares have gained 3.4% in the past year compared with 31.4% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Air Products currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Cabot Corporation (CBT - Free Report) .
Nucor has a projected earnings growth rate of around 455.7% for the current year. The company’s shares have surged 126.3% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow has an expected earnings growth rate of around 403.01% for the current year. The company’s shares have gained 38.4% in the past year. It currently carries a Zacks Rank #2 (Buy).
Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have rallied 36.8% in the past year. It currently holds a Zacks Rank #2.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Air Products' (APD) Earnings Lag Estimates in Q3, Sales Beat
Air Products and Chemicals, Inc. (APD - Free Report) logged earnings from continuing operations of $2.36 per share in third-quarter fiscal 2021 (ended Jun 30, 2021), up 17% from $2.01 recorded in the year-ago quarter.
Adjusted earnings per share (EPS) in the reported quarter were $2.31, which missed the Zacks Consensus Estimate of $2.39.
In the quarter under review, the industrial gases giant delivered revenues of $2,604.7 million, up around 26% year over year. The figure beat the Zacks Consensus Estimate of $2,562.8 million.
Pricing increased 2% along with 6% favorable currency and 6% higher energy pass-through. Volumes were higher as recovery from the pandemic, new plants and acquisitions more than offset reduced contributions from the Lu'An facility in China.
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 Industrial Gases - America segment were up 25% year over year to $1,063 million. The upside was driven by merchant pandemic recovery, higher pricing, higher energy cost pass-through, higher volumes, higher medical oxygen sales in South America and favorable currency.
Revenues in the Industrial Gases - Europe, Middle East, and Africa (EMEA) segment surged 45% year over year to $623 million. Higher volumes led by pandemic recovery and acquisitions as well as favorable currency drove results in the segment. The segment also witnessed higher pricing and energy pass-through.
Revenues in the Industrial Gases - Asia segment rose 15% year over year to $752 million. The upside can be attributed to favorable currency, higher volumes and higher pricing. Increased merchant volumes and new plants were partly offset by reduced contributions from Lu'An.
Financials
Air Products ended fiscal third quarter with cash and cash equivalents of around $4,291.6 million, up 9.4% year over year. Long-term debt was down 2.6% year over year to $6,892.2 million.
Outlook
Air Products expects adjusted EPS of $8.95-$9.05 for fiscal 2021 and $2.44-$2.54 for the fourth quarter of fiscal 2021. The company expects capital spending of roughly $2.5 billion for the fiscal, excluding the Jazan transaction.
Price Performance
The company’s shares have gained 3.4% in the past year compared with 31.4% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Air Products currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Cabot Corporation (CBT - Free Report) .
Nucor has a projected earnings growth rate of around 455.7% for the current year. The company’s shares have surged 126.3% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow has an expected earnings growth rate of around 403.01% for the current year. The company’s shares have gained 38.4% in the past year. It currently carries a Zacks Rank #2 (Buy).
Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have rallied 36.8% in the past year. It currently holds a Zacks Rank #2.