Advertisement
Singapore markets closed

  • Straits Times Index

    3,280.10
    -7.65 (-0.23%)
     

  • Nikkei

    37,934.76
    +306.28 (+0.81%)
     

  • Hang Seng

    17,651.15
    +366.61 (+2.12%)
     

  • FTSE 100

    8,139.83
    +60.97 (+0.75%)
     

  • Bitcoin USD

    62,581.52
    -1,813.32 (-2.82%)
     

  • CMC Crypto 200

    1,306.73
    -89.80 (-6.43%)
     

  • S&P 500

    5,099.96
    +51.54 (+1.02%)
     

  • Dow

    38,239.66
    +153.86 (+0.40%)
     

  • Nasdaq

    15,927.90
    +316.14 (+2.03%)
     

  • Gold

    2,349.60
    +7.10 (+0.30%)
     

  • Crude Oil

    83.66
    +0.09 (+0.11%)
     

  • 10-Yr Bond

    4.6690
    -0.0370 (-0.79%)
     

  • FTSE Bursa Malaysia

    1,575.16
    +5.91 (+0.38%)
     

  • Jakarta Composite Index

    7,036.08
    -119.22 (-1.67%)
     

  • PSE Index

    6,628.75
    +53.87 (+0.82%)
     

Air Products (APD) to Post Q4 Earnings: What's in the Cards?

Zacks Equity Research
·4-min read

Air Products and Chemicals, Inc. APD is slated to release fourth-quarter fiscal 2022 results before the bell on Nov 3.

The industrial gas giant beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missed once. It has a trailing four-quarter negative earnings surprise of around 0.2%, on average. The company reported an earnings surprise of around 1.3% in the last reported quarter.

The company is expected to have gained from cost-improvement and productivity initiatives and higher pricing in the fiscal fourth quarter. However, the impacts of energy cost inflation are likely to get reflected in its performance.
 
Shares of the company have declined 16% in the past year compared with a 12% fall of the industry.

 

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

 

What do the Estimates Say?

The Zacks Consensus Estimate for Air Products’ fourth-quarter revenues is currently pegged at $3,280 million, suggesting a rise of 15.4% year over year.

The Zacks Consensus Estimate for the Industrial Gases — Americas segment’s revenues is currently pegged at $1,456 million, calling for a rise of 30.6% year over year.

The consensus mark for the Industrial Gases — Asia segment’s revenues is pegged at $785 million, which suggests 4.1% year-over-year growth.

The Zacks Consensus Estimate for the Industrial Gases — EMEA segment’s revenues is pegged at $767 million, indicating a 13.8% year-over-year increase.

Some Factors at Play

Air Products’ productivity actions and benefits of acquisitions and new plants are expected to get reflected in the company’s results in the to-be-reported quarter. Healthy merchant demand is also likely to have supported volumes.

The company is boosting productivity to improve its cost structure. It is seeing the positive impacts of its productivity actions. Benefits from additional productivity and cost improvement programs are likely to have supported margins in the fiscal fourth quarter. It is also likely to have gained from higher pricing.

However, the company is likely to have been impacted by the energy cost inflation in the fiscal fourth quarter. Its results are likely to reflect higher power costs. The EMEA segment is likely to have witnessed higher energy costs due to elevated natural gas and electricity costs. The company is also expected to have faced headwinds from unfavorable currency translation stemming from a stronger U.S. dollar.

Air Products and Chemicals, Inc. Price and EPS Surprise

 

Air Products and Chemicals, Inc. Price and EPS Surprise
Air Products and Chemicals, Inc. Price and EPS Surprise

Air Products and Chemicals, Inc. price-eps-surprise | Air Products and Chemicals, Inc. Quote

Zacks Model

Our proven model does not conclusively predict an earnings beat for Air Products this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for Air Products is -0.57%. The Zacks Consensus Estimate for fourth-quarter earnings is currently pegged at $2.77. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Air Products currently carries a Zacks Rank #3.

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:

Koppers Holdings Inc. KOP, slated to release earnings on Nov 4, has an Earnings ESP of +2.28% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.

ATI Inc. ATI, scheduled to release earnings on Nov 2, has an Earnings ESP of +1.15%.

The Zacks Consensus Estimate for ATI's earnings for the third quarter is currently pegged at 52 cents. ATI currently carries a Zacks Rank #3.

Huntsman Corporation HUN, scheduled to release earnings on Nov 4, has an Earnings ESP of +3.59%.

The consensus estimate for Huntsman’s third-quarter earnings is currently pegged at 72 cents. HUN currently carries a Zacks Rank #3.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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
 
Air Products and Chemicals, Inc. (APD) : Free Stock Analysis Report
 
ATI Inc. (ATI) : Free Stock Analysis Report
 
Koppers Holdings Inc. (KOP) : Free Stock Analysis Report
 
Huntsman Corporation (HUN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research