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Air Products' (APD) Beats on Q3 Earnings, Bumps Up FY18 View
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Air Products and Chemicals, Inc. (APD - Free Report) topped earnings expectations in third-quarter fiscal 2018 (ended Jun 30, 2018). The industrial gases giant logged fiscal third-quarter adjusted earnings of $1.95 per share, up 18% from the year-ago quarter. Earnings outstripped the Zacks Consensus Estimate of $1.84.
Net income (attributable to Air Products), as reported, for the fiscal third quarter was up nearly five-fold year over year to $473.9 million or $2.15 per share.
Air Products posted fiscal third-quarter revenues of $2,259 million, up around 6% year over year, driven by 3% higher volumes, 3% favorable currency impact and 1% higher pricing. Sales, however, missed the Zacks Consensus Estimate of $2,291 million.
Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise
Revenues from the Industrial Gases — America segment went up 2% year over year to $949 million in the quarter, supported by strong hydrogen demand and favorable merchant gases volumes.
Sales from the Industrial Gases — Europe, Middle East, and Africa (EMEA) segment climbed 24% year over year to $561 million due to higher volumes as well as favorable currency and pricing.
Sales from the Industrial Gases — Asia segment increased 16% year over year to $624 million on the back of higher volumes and pricing as well as favorable currency swings.
Financial Position
Air Products ended fiscal third-quarter with cash and cash equivalents of $2,986.5 million, reflecting a 28% rise year over year. Long-term debt was essentially flat year over year at $3,377.1 million.
Outlook
Air Products raised its adjusted earnings guidance for fiscal 2018. It now anticipates adjusted earnings to be in the range of $7.40 to $7.45 per share (a 17-18% increase from the prior year), up from its earlier view of $7.25 to $7.40 per share. The company expects adjusted earnings to be in the band of $1.95 to $2.00 per share for the fiscal fourth quarter, up 11-14% year over year. It also sees capital expenditure of $1.8-$2 billion for fiscal 2018.
Price Performance
Air Products’ shares have moved up 9.3% over a year, outperforming the industry’s 4.1% rise.
Zacks Rank & Stocks to Consider
Air Products currently carries a Zacks Rank #4 (Sell).
KMG Chemicals has an expected long-term earnings growth rate of 28.5%. Its shares have gained roughly 41% over a year.
Methanex has an expected long-term earnings growth rate of 15%. The company’s shares have rallied around 52% in a year.
BHP Billiton has an expected long-term earnings growth rate of 5.3%. Its shares have shot up roughly 24% over a year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Air Products' (APD) Beats on Q3 Earnings, Bumps Up FY18 View
Air Products and Chemicals, Inc. (APD - Free Report) topped earnings expectations in third-quarter fiscal 2018 (ended Jun 30, 2018). The industrial gases giant logged fiscal third-quarter adjusted earnings of $1.95 per share, up 18% from the year-ago quarter. Earnings outstripped the Zacks Consensus Estimate of $1.84.
Net income (attributable to Air Products), as reported, for the fiscal third quarter was up nearly five-fold year over year to $473.9 million or $2.15 per share.
Air Products posted fiscal third-quarter revenues of $2,259 million, up around 6% year over year, driven by 3% higher volumes, 3% favorable currency impact and 1% higher pricing. Sales, however, missed the Zacks Consensus Estimate of $2,291 million.
Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise
Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise | Air Products and Chemicals, Inc. Quote
Segment Highlights
Revenues from the Industrial Gases — America segment went up 2% year over year to $949 million in the quarter, supported by strong hydrogen demand and favorable merchant gases volumes.
Sales from the Industrial Gases — Europe, Middle East, and Africa (EMEA) segment climbed 24% year over year to $561 million due to higher volumes as well as favorable currency and pricing.
Sales from the Industrial Gases — Asia segment increased 16% year over year to $624 million on the back of higher volumes and pricing as well as favorable currency swings.
Financial Position
Air Products ended fiscal third-quarter with cash and cash equivalents of $2,986.5 million, reflecting a 28% rise year over year. Long-term debt was essentially flat year over year at $3,377.1 million.
Outlook
Air Products raised its adjusted earnings guidance for fiscal 2018. It now anticipates adjusted earnings to be in the range of $7.40 to $7.45 per share (a 17-18% increase from the prior year), up from its earlier view of $7.25 to $7.40 per share. The company expects adjusted earnings to be in the band of $1.95 to $2.00 per share for the fiscal fourth quarter, up 11-14% year over year. It also sees capital expenditure of $1.8-$2 billion for fiscal 2018.
Price Performance
Air Products’ shares have moved up 9.3% over a year, outperforming the industry’s 4.1% rise.
Zacks Rank & Stocks to Consider
Air Products currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth considering in the basic materials space include KMG Chemicals, Inc. , Methanex Corporation (MEOH - Free Report) and BHP Billiton Limited (BHP - Free Report) each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KMG Chemicals has an expected long-term earnings growth rate of 28.5%. Its shares have gained roughly 41% over a year.
Methanex has an expected long-term earnings growth rate of 15%. The company’s shares have rallied around 52% in a year.
BHP Billiton has an expected long-term earnings growth rate of 5.3%. Its shares have shot up roughly 24% over a year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>