Air Products and Chemicals Inc. (APD) makes industrial gases as well as a variety of polymer and performance chemicals. It also supplies processing equipment. The company serves technology, energy, industrial and health care customers globally.
Air Products benefits from a diverse customer base, sustained pricing power and cost-reduction measures. While new business deals and strategic investments are expected to support results in fiscal 2015, the company’s tonnage gases business may continue to face challenges due to maintenance spending and the unfavorable impact of the exit from the polyurethane intermediates business (PUI) business. Higher energy costs could also pose a threat to margin expansion.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Air Products for the first-quarter fiscal 2015 (ended Dec 31, 2014) has been stationary over the past week and month. Air Products does have a decent history when it comes to recent earnings reports as it has beaten estimates in three of the last four quarters with an average surprise of 0.42%.
Earnings
Air Products beats on earnings. Our consensus called for EPS of $1.49, and the company reported adjusted EPS of $1.55.
Revenues
Revenues miss. Air Products posted revenues of $2,560.8 million, compared to our consensus estimate of $2,676 million.
Key Stats/Developments to Note
Air Products expects earnings from continuing operations for second-quarter fiscal 2015 to be in the range of $1.50 to $1.55 per share. For fiscal 2015, it sees earnings from continuing operations of $6.35 to $6.55 per share.
Zacks Rank
Currently, Air Products has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released.
Market Reaction
Air Products’ shares were inactive in pre-market trading. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on Air Products’ earnings report!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment