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Air Products (APD) to Report Q1 Earnings: What's in Store?

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Air Products and Chemicals, Inc. (APD - Free Report) is scheduled to report results for the first quarter of fiscal 2023 before the opening bell on Feb 2.

The company surpassed Zacks Consensus Estimate for earnings in all of the last four quarters, with the average surprise being 1.7%. It posted an earnings surprise of 4.3% in the last reported quarter.

Air Products is expected to have benefited from cost improvement and productivity initiatives across its business units. However, the impacts of elevated power costs and weaker volumes are likely to get reflected in the company’s first-quarter results.

The firm’s shares have jumped 10.3% in the past year compared with the industry’s rise of 3.5%.

Zacks Investment Research

Image Source: Zacks Investment Research

Zacks Model

Our proven model predicts 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. This is just the case here, as elaborated below.

Earnings ESP: Earnings ESP for Air Products is +2.67%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at $2.73. 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 #2.

What Do the Estimates Say?

The company expects adjusted earnings per share for the first quarter to be in the range of $2.60-$2.80.

The Zacks Consensus Estimate for sales for the to-be-reported quarter currently stands at $3,293 million, which suggests a rise of 10% from the year-ago reported number.

The Zacks Consensus Estimate for the Industrial Gases – Americas Segment’s revenues is currently pegged at $1,415 million, implying a rise of 15.6% year over year.

The Zacks Consensus Estimate for the Industrial Gases – Asia Segment’s revenues is currently pegged at $814 million, suggesting a rise of 4.4% from the year-ago reported number.

The Zacks Consensus Estimate for the Industrial Gases – Europe Segment’s revenues is currently pegged at $760 million, indicating a decline of 1% year over year.

Some Factors to Watch

Air Products is expected to have witnessed a positive impact on its operations in the first quarter due to cost improvement programs and productivity actions taken by the company.  Apart from this, the benefits of new business deals and high-return projects are expected to get reflected in the company’s results.  

However, APD is likely to have faced headwinds from high power and fuel costs, putting a dent in its margins for the first quarter. The company is also expected to have faced headwinds from adverse currency movements in the first quarter. Pandemic-related shutdowns in China might have affected APD’s merchant volumes in the Asia segment. 

Air Products and Chemicals, Inc. Price and EPS Surprise

Air Products and Chemicals, Inc. Price and EPS Surprise

Other Stocks That Warrant a Look

Here are some other companies in the basic materials space you may consider, as our model shows these, too, have the right combination of elements to post an earnings beat this quarter:

Albemarle Corporation (ALB - Free Report) , which is scheduled to release earnings on Feb 15, has an Earnings ESP of +7.16% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks Rank #1 stocks here.

The Zacks Consensus Estimate for ALB’s fourth-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for its earnings for the fourth quarter is currently pegged at $7.89.

Celanese Corporation (CE - Free Report) , which is scheduled to release earnings on Feb 23, has an Earnings ESP of +7.71% and carries a Zacks Rank #3.

The Zacks Consensus Estimate for earnings for CE for the fourth quarter is pegged at $1.57.

Huntsman Corporation (HUN - Free Report) , which is scheduled to release earnings on Feb 21, has an Earnings ESP of +7.14% and carries a Zacks Rank #3.

The Zacks Consensus Estimate for earnings for HUN for the fourth quarter is pegged at 11 cents.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.



 


 

 

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