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Air Products and Chemicals (APD) Up 0.5% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Air Products and Chemicals (APD - Free Report) . Shares have added about 0.5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Air Products and Chemicals due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Air Products' Q4 Earnings Top Estimates on Higher Prices
Air Products 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 around $3.19 billion, down around 11% year over year. The figure missed the Zacks Consensus Estimate of $3.3 billion. Higher prices (up 2%) and favorable currency swings were more than offset by lower energy cost pass-through.
Segment Highlights
Revenues in the Americas segment were down 12% year over year to $1.35 billion. The figure was higher than our estimate of $1.31 billion. 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 $1.62 billion, down about 3% year over year. Long-term debt was up around 44% year over year to $9.28 billion.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
Currently, Air Products and Chemicals has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Air Products and Chemicals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Air Products and Chemicals belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, Chemours (CC - Free Report) , has gained 16.8% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Chemours reported revenues of $1.49 billion in the last reported quarter, representing a year-over-year change of -16.3%. EPS of $0.64 for the same period compares with $1.24 a year ago.
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Air Products and Chemicals (APD) Up 0.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Air Products and Chemicals (APD - Free Report) . Shares have added about 0.5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Air Products and Chemicals due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Air Products' Q4 Earnings Top Estimates on Higher Prices
Air Products 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 around $3.19 billion, down around 11% year over year. The figure missed the Zacks Consensus Estimate of $3.3 billion. Higher prices (up 2%) and favorable currency swings were more than offset by lower energy cost pass-through.
Segment Highlights
Revenues in the Americas segment were down 12% year over year to $1.35 billion. The figure was higher than our estimate of $1.31 billion. 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 $1.62 billion, down about 3% year over year. Long-term debt was up around 44% year over year to $9.28 billion.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
Currently, Air Products and Chemicals has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Air Products and Chemicals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Air Products and Chemicals belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, Chemours (CC - Free Report) , has gained 16.8% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Chemours reported revenues of $1.49 billion in the last reported quarter, representing a year-over-year change of -16.3%. EPS of $0.64 for the same period compares with $1.24 a year ago.