Air Products and Chemicals, Inc
. (APD - Free Report
) beat earnings expectations in third-quarter fiscal 2017 (ended Jun 30, 2017).
The industrial gases giant logged third-quarter adjusted earnings of $1.65 per share, up 15% from the year-ago quarter. Earnings surpassed the Zacks Consensus Estimate of $1.60.
Net income from continuing operations, as reported, fell 58% year over year to $104 million or 47 cents per share. Cost of sales for the reported quarter rose roughly 12.6% year over year to around $1.5 billion. Selling and administrative expenses increased 9.6% year over year to $184.5 million.
Revenues rose 11% year over year to $2.12 billion in the reported quarter, beating the Zacks Consensus Estimate of $2.05 billion. An 8% increase in volumes and 5% favorable energy pass-through more than offset the currency headwinds of 2% in the quarter.
Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise
Revenues from the Industrial Gases – America segment grew 12% year over year to $930 million in the reported quarter, supported by 9% rise in energy pass-through and 3% increase in volumes.
Sales from the Industrial Gases – Europe, Middle East, and Africa (EMEA) segment rose 5% year over year to $542 million due to 6% higher volumes and 4% favorable energy pass-through, partly offset by 4% unfavorable currency and 1% lower pricing.
Sales from the Industrial Gases – Asia segment went up 20% year over year to $538 million on the back of 20% increase in volumes.
Air Products ended third-quarter fiscal 2017 with cash and cash equivalents of $2,332.6 million, a whopping 353.1% year over year surge. Total long-term debt fell around 14.2% year over year to $ 3,366.6 million.
Air Products has increased its adjusted earnings per share guidance for the full year. For fiscal 2017, Air Products expects adjusted earnings per share of $6.20–$6.25 (up from $6.00-$6.25 expected earlier), which at midpoint, represents a 10% increase over last year. For the fourth-quarter fiscal 2017, Air Products anticipates adjusted earnings per share from continuing operations of $1.65–$1.70 per share, which at midpoint, also represents a 12% increase over last year.
The company expects capital expenditures of roughly $1 billion in fiscal 2017.
Air Products’ shares have moved up 2.1% in the last six months, underperforming the industry
’s 6.6% gain.
Zacks Rank & Stocks to Consider
Air Products currently carries a Zacks Rank #3 (Hold).
Akzo Nobel has an expected long-term earnings growth of 11.1%.
Arkema has an expected long-term earnings growth of 12.4%.
Hitachi Chemical has an expected long-term earnings growth of 5%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.