Air Products and Chemicals, Inc. (APD - Free Report) and Haldor Topsoe announced the signing of a global alliance agreement.
Haldor Topsoe is a global leader in high-efficiency catalysts and proprietary technology for chemical and refining industries. Notably, the two companies have agreed to work to develop and build large-scale ammonia, methanol and/or dimethyl ether plants.
The alliance agreement offers Air Products with access to Topsoe's technology license. It also supplies certain engineering design, facilities, high-performance catalysts and technical services. Notably, the alliance enables the integration of Topsoe's technology into several technologies of Air Products such as gasification of several feedstocks, and synthesis gas processes.
Per Air Products’ management, the alliance agreement will bolster the company’s offerings and customer confidence in the quality and reliability of project development and efficiency.
The involvement of Air Products in the projects is expected to offer sustainability benefits. Notably, the projects can serve as carriers of renewable hydrogen molecules.
Air Products’ shares have gained 16.3% in the past year against the industry’s 27.5% decline.
Last month, the company reported second-quarter fiscal 2020 earnings from continuing operations of $2.21 per share, up 16% from $1.90 recorded in the year-ago quarter. However, adjusted earnings per share of $2.04 missed the Zacks Consensus Estimate of $2.05.
Revenues improved 1.3% year over year to $2,216.3 million for the fiscal second quarter. Moreover, the top line beat the Zacks Consensus Estimate of $2,142.6 million.
Air Products withdrew its earnings guidance for 2020 due to the unknown duration and impacts of the coronavirus pandemic. The company also has not provided earnings guidance for the fiscal third quarter due to uncertainties.
Air Products expects declines in the Americas and EMEA merchant volumes to sustain. Further, in the fiscal third quarter, it expects it to be more pronounced and potentially longer, depending on the duration and impacts of the coronavirus pandemic.
Air Products and Chemicals, Inc. Price and Consensus
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the basic materials space are Equinox Gold Corp. (EQX - Free Report) , Newmont Corporation (NEM - Free Report) and Barrick Gold Corporation (GOLD - Free Report) .
Equinox Gold currently sports a Zacks Rank #1 (Strong Buy) and has a projected earnings growth rate of 231% for 2020. The company’s shares have gained 43% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Newmont has a projected earnings growth rate of 85.6% for the current year. The company’s shares have rallied around 113% in a year. It currently has a Zacks Rank #2 (Buy).
Barrick has a projected earnings growth rate of 64.7% for 2020. It currently carries a Zacks Rank #2. The company’s shares have rallied 122.9% in a year.
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