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Air Products (APD) to Post Q3 Earnings: What's in the Offing?
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Air Products and Chemicals, Inc. (APD - Free Report) is slated to release third-quarter fiscal 2022 results before the bell on Aug 4. The company is expected to have gained from cost-improvement and productivity initiatives and higher pricing in the quarter. However, the impacts of energy cost inflation are likely to get reflected in its performance.
The industrial gas giant beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missed once. It has a trailing four-quarter negative earnings surprise of around 0.2%, on average. The company reported an earnings surprise of around 1.3% in the last reported quarter.
Shares of the company have declined 14.4% in the past year compared with a 7.9% fall of the industry.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for Air Products this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for Air Products is +0.29%. The Zacks Consensus Estimate for the fiscal third quarter is currently pegged at $2.61. Our estimate for the quarter is $2.63. 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.
What do the Estimates Say?
The Zacks Consensus Estimate for Air Products’ third-quarter revenues is currently pegged at $3,060 million, suggesting a rise of 17.5% year over year. Our estimate for the quarter is $3,065.3 million.
The Zacks Consensus Estimate for the Industrial Gases — Americas segment’s revenues is currently pegged at $1,215 million, calling for a rise of 14.3% year over year. Our estimate for the quarter is $1,161.8 million.
The consensus mark for the Industrial Gases — Asia segment’s revenues is pegged at $764 million, which suggests 1.6% year-over-year growth. Our estimate for the quarter is $852.3 million.
The Zacks Consensus Estimate for the Industrial Gases — EMEA segment’s revenues is pegged at $747 million, indicating a 19.9% year-over-year increase. Our estimate for the quarter is $857.1 million.
Some Factors at Play
Air Products’ productivity actions and benefits of acquisitions and new plants are expected to get reflected in the company’s results in the to-be-reported quarter. Healthy merchant demand is also likely to have supported volumes.
The company 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 fiscal third quarter. It is also likely to have gained from higher pricing.
However, the company is likely to have been impacted by the energy cost inflation in the fiscal third quarter. Its results are likely to reflect higher power and fuel costs in the EMEA segment. Maintenance outages are also likely to have impacted its performance.
Air Products and Chemicals, Inc. Price and EPS Surprise
Here are some companies in the basic materials space you may want to consider, as our model shows these too have the right combination of elements to post an earnings beat this quarter:
The consensus estimate for Cabot’s fiscal third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for CBT’s earnings for the quarter is pegged at $1.53.
ATI Inc. (ATI - Free Report) , scheduled to release earnings on Aug 4, has an Earnings ESP of +0.90% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for ATI’s second-quarter earnings has been revised 17.8% upward in the past 60 days. The consensus estimate for ATI’s earnings for the quarter is currently pegged at 37 cents.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Aug 3, has an Earnings ESP of +8.38% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Albemarle's second-quarter earnings has been revised 5.6% upward over the past 60 days. The consensus estimate for ALB’s earnings for the quarter is currently pegged at $3.03.
Image: Bigstock
Air Products (APD) to Post Q3 Earnings: What's in the Offing?
Air Products and Chemicals, Inc. (APD - Free Report) is slated to release third-quarter fiscal 2022 results before the bell on Aug 4. The company is expected to have gained from cost-improvement and productivity initiatives and higher pricing in the quarter. However, the impacts of energy cost inflation are likely to get reflected in its performance.
The industrial gas giant beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missed once. It has a trailing four-quarter negative earnings surprise of around 0.2%, on average. The company reported an earnings surprise of around 1.3% in the last reported quarter.
Shares of the company have declined 14.4% in the past year compared with a 7.9% fall of the industry.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for Air Products this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for Air Products is +0.29%. The Zacks Consensus Estimate for the fiscal third quarter is currently pegged at $2.61. Our estimate for the quarter is $2.63. 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.
What do the Estimates Say?
The Zacks Consensus Estimate for Air Products’ third-quarter revenues is currently pegged at $3,060 million, suggesting a rise of 17.5% year over year. Our estimate for the quarter is $3,065.3 million.
The Zacks Consensus Estimate for the Industrial Gases — Americas segment’s revenues is currently pegged at $1,215 million, calling for a rise of 14.3% year over year. Our estimate for the quarter is $1,161.8 million.
The consensus mark for the Industrial Gases — Asia segment’s revenues is pegged at $764 million, which suggests 1.6% year-over-year growth. Our estimate for the quarter is $852.3 million.
The Zacks Consensus Estimate for the Industrial Gases — EMEA segment’s revenues is pegged at $747 million, indicating a 19.9% year-over-year increase. Our estimate for the quarter is $857.1 million.
Some Factors at Play
Air Products’ productivity actions and benefits of acquisitions and new plants are expected to get reflected in the company’s results in the to-be-reported quarter. Healthy merchant demand is also likely to have supported volumes.
The company 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 fiscal third quarter. It is also likely to have gained from higher pricing.
However, the company is likely to have been impacted by the energy cost inflation in the fiscal third quarter. Its results are likely to reflect higher power and fuel costs in the EMEA segment. Maintenance outages are also likely to have impacted its performance.
Air Products and Chemicals, Inc. Price and EPS Surprise
Air Products and Chemicals, Inc. price-eps-surprise | Air Products and Chemicals, Inc. Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these too have the right combination of elements to post an earnings beat this quarter:
Cabot Corporation (CBT - Free Report) , slated to release earnings on Aug 8, has an Earnings ESP of +0.16% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Cabot’s fiscal third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for CBT’s earnings for the quarter is pegged at $1.53.
ATI Inc. (ATI - Free Report) , scheduled to release earnings on Aug 4, has an Earnings ESP of +0.90% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for ATI’s second-quarter earnings has been revised 17.8% upward in the past 60 days. The consensus estimate for ATI’s earnings for the quarter is currently pegged at 37 cents.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Aug 3, has an Earnings ESP of +8.38% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Albemarle's second-quarter earnings has been revised 5.6% upward over the past 60 days. The consensus estimate for ALB’s earnings for the quarter is currently pegged at $3.03.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.