Air Products and Chemicals Inc. (APD Quick QuoteAPD - Free Report) makes industrial gases as well as a variety of polymer and performance chemicals. It also supplies processing equipment. The company serves technology, energy, industrial and health care customers globally.

Air Products benefits from a diverse customer base, sustained pricing power and cost-reduction measures. However, Air Products' industrial gases business in the EMEA is seeing pressure from a weak operating environment. The company is also exposed to currency headwinds.

Let’s have a quick look at the company’s second-quarter fiscal 2017 release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Air Products for the fiscal second-quarter has been static over the last month. Air Products has beaten estimates in three of the last four quarters with an average positive surprise of 0.5%.

Earnings

Air Products logged adjusted earnings of $1.43 per share for the fiscal second-quarter, up 4% year over year. Earnings surpassed the Zacks Consensus Estimate of $1.38.

Air Products and Chemicals, Inc. Price and EPS Surprise

Air Products and Chemicals, Inc. Price and EPS Surprise | Air Products and Chemicals, Inc. Quote

Revenues

Air Products posted net sales of $1.98 billion for the quarter, up 11% year over year. It also beat the Zacks Consensus Estimate of $1.83 billion.

Key Stats/Developments to Note

Air Products said that it has a significant amount of cash to invest in its core industrial gases business. The company expects to have roughly $8 billion to deploy in strategic, high-return opportunities to create shareholder value over the next three years. For fiscal 2017, Air Products expects adjusted earnings per share of $6.00 to $6.25, which at midpoint, represents a 9% increase over last year. For the third-quarter fiscal 2017, Air Products anticipates adjusted earnings per share from continuing operations of $1.55 to $1.60 per share, which at midpoint, also represents a 9% increase over last year.

Zacks Rank

Currently, Air Products has a Zacks Rank #2 (Buy).

Market Reaction

Air Products’ shares remains inactive in pre-market trading.

Check back later for our full write up on Air Products’ earnings report!

Looking for Ideas with Even Greater Upside?

Most of Zacks’ investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>