Praxair Inc. (PX) engages in the production and distribution of industrial gases, primarily in North America, South America, Europe and Asia. Increased applications of industrial gases in industries like healthcare, petroleum refining, computer-chip manufacturing, beverage carbonation, fiber-optics, steel making, aerospace, chemicals and water treatment is a boon for the company. This Danbury, CT-based company has a $35.9 billion market capitalization.
However, weak industrial activities in the U.S. as well as damper global economy in the fourth-quarter 2014 had adverse impacts on demand for Praxair’s products. To add to the woes, declining oil prices forced some oil-producing companies to curtail their production, adversely impacting the company’s businesses from the oil and gas industry. Also, the company is likely to bear the charges related to change of exchange rate used for converting the results of Venezuelan business. Investors are eagerly waiting for the company’s latest earnings report.
Praxair has failed to deliver better-than-expected results in the trailing four quarters, with earnings miss recorded in two quarters and in-line results in others. Average earnings surprise was -0.31%.
Currently, PX has a Zacks Rank #4 (Sell), but that could definitely change after the release of its upcoming earnings report. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Praxair’s adjusted earnings came in at $1.57 per share in fourth-quarter 2014. The bottom line result came in line with the Zacks Consensus Estimate of $1.57 per share.
Revenue: Revenues missed. Praxair generated revenues of $2,990 million, below the Zacks Consensus Estimate of $3,067 million.
Key Stats to Note: Praxair distributed approximately $1.5 billion to shareholders in the form of dividends and share buyback. Also, the company’s board of directors has announced a 10% increase in its quarterly dividend rate, which post the hike stands at 71.5 cents per share.
For 2014, Praxair generated record free cash flow of $1.2 billion in.
Stock Price: Praxair shares were down almost 1.06% ahead of the report while no movement has been recorded in the pre-market trading session.
Check back our full write up on this PX earnings report later!
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