Yahoo Finance Air Products (APD) Misses Earnings and Revenue Estimates in Q1
Air Products and Chemicals, Inc. APD recorded first-quarter fiscal 2023 (ending Dec 31, 2022) earnings (from continuing operations) of $2.57 per share, reflecting a rise of 2% from the year-ago quarter's $2.52.
APD posted adjusted earnings of $2.64 per share, up 6% from year over year. It missed the Zacks Consensus Estimate of $2.73.
Higher pricing and volumes drove the bottom line in the first quarter. However, it was offset by higher costs and adverse currency movements.
The company’s net sales in the first quarter were $3,174.7 million, which lagged the Zacks Consensus Estimate of $3,292.9 million. Net sales increased around 6% from $2,994.2 million reported in the prior-year quarter.
The top line was driven primarily by higher pricing across APD’s largest segments and higher volumes, notably in Asia and America, in the reported quarter. The company was also able to pass through higher energy costs to its customers, which aided the sales in the first quarter. However, this rise was partly offset by unfavorable currency movements.
Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise
Air Products and Chemicals, Inc. price-consensus-eps-surprise-chart | Air Products and Chemicals, Inc. Quote
Segment Highlights
Revenues in the Americas segment were up 13% year over year to $1,384 million. The upside was driven by higher volumes and pricing, partly offset by unfavorable currency swings and lower energy cost pass-through.
Revenues in the Europe segment rose 6% year over year to $792 million. The segment saw higher pricing and benefited from energy cost pass-through, partly offset by unfavorable currency swings and lower volumes in the first quarter.
Revenues in the Asia segment remained flat year over year at $778 million. The segment sales were driven by higher pricing, energy cost pass-through and increased volumes, partly offset by unfavorable currency swings.
Equity affiliates' income in the Middle East & India segment decreased to $64 million from $92 million in the prior-year quarter, mainly due to the finalization of the Jazan air separation unit joint venture in the prior-year quarter.
Financials
At the end of the first quarter, APD had cash and cash equivalents of $3,131 million, increasing around 6% year over year. Long-term debt decreased approximately 0.9% to $6,834.4 million.
Outlook
Air Products expects full-year fiscal 2023 adjusted earnings per share of $11.20-$11.50, indicating a 9-12% year-over-year growth. For the second quarter of fiscal 2023, the company expects adjusted earnings per share in the range of $2.50-$2.70, suggesting a rise of 7-15% from the year-ago quarter.
Air Products expects capital expenditures of $5-$5.5 billion for full-year fiscal 2023.
Price Performance
The company’s shares have gained 13.3% in the past year compared with a 7% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Air Products currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks to consider in the basic materials space include Commercial Metals Company CMC, Nucor Corporation NUE and Agnico Eagle Mines Limited AEM. CMC and NUE both sport a Zacks Rank #1 (Strong Buy), while AEM carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
CMC’s shares have gained 59.8% in the past year. The Zacks Consensus Estimate for CMC’S current-year earnings has been revised 9.8% upward in the past 60 days. The firm outpaced Zacks Consensus Estimate in all of the last four quarters. It delivered a trailing four-quarter earnings surprise of 16.7% on average.
Nucor’s shares have gained 55.8% in the past year. The Zacks Consensus Estimate for NUE’S current-year earnings has been revised 10.6% upward in the past 60 days. The company topped Zacks Consensus Estimate in all of the last fourth quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average.
Agnico’s shares have gained 18.8% in the past year. The Zacks Consensus Estimate for AEM’S current-year earnings has been revised 0.4% upward in the past 60 days.
Agnico Eagle beat Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.4% on average.
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