Air Products and Chemicals Inc. (APD - Free Report) opened a world-class engineering center at Pune in Maharashtra, India. The center will provide technology and equipment for air separation, hydrogen generation and associated technologies for industrial gases applications.
This move will enable the company to expand its operations in India by increasing capabilities for Engineering, Procurement, Construction (EPC) activity across the industry. Also, it will act as an EPC innovation hub for the company's operations in India and throughout the world.
Air Products’ shares have moved up 14.6% over a year, outperforming the industry’s 11.2% gain.
The company logged adjusted earnings of $1.71 per share for second-quarter fiscal 2018, up 20% from the year-ago quarter. Earnings surpassed the Zacks Consensus Estimate of $1.68
Air Products posted fiscal second-quarter revenues of $2,155.7 million, up around 9% year over year. Sales, however, missed the Zacks Consensus Estimate of $2,190 million.
Air Products raised its earnings outlook for fiscal 2018 factoring in the expected contribution from the Lu'An syngas project. The company now expects its adjusted earnings to be in the range of $7.25-$7.40 per share (a 15-17% increase from the prior year), up from its earlier view of $7.15-$7.35 per share.
Moreover, the company expects adjusted earnings to be in the band of $1.80 to $1.85 per share for the fiscal third quarter, up 9-12% year over year. It also sees capital expenditure of $1.8-$2 billion for fiscal 2018.
Air Products and Chemicals, Inc. Price and Consensus
Zacks Rank & Stocks to Consider
Air Products currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the basic materials space worth considering are FMC Corporation (FMC - Free Report) , Huntsman Corporation (HUN - Free Report) and Celanese Corporation (CE - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FMC Corp has an expected long-term earnings growth rate of 13.6%. Its shares have gained around 18.8% over a year.
Huntsman has an expected long-term earnings growth rate of 8.3%. Its shares have moved up around 20.1% over a year.
Celanese has an expected long-term earnings growth rate of 8.9%. Its shares have gained around 24.7% over a year.
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