Air Products and Chemicals, Inc. (NYSE:APD) beat earnings expectations in fourth-quarter fiscal 2017 (ended Sep 30, 2017).
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The industrial gases giant logged fourth-quarter adjusted earnings of $1.76 per share, up 18% from the year-ago quarter. Earnings surpassed the Zacks Consensus Estimate of $1.69.
Net income from continuing operations, for the reported quarter, rose 64% year over year to $474 million or $2.15 per share. Cost of sales for the reported quarter rose roughly 14.7% year over year to around $1.5 billion. Selling and administrative expenses increased 7.2% year over year to $187.5 million.
Revenues rose 13% year over year to $2.2 billion in the reported quarter, beating the Zacks Consensus Estimate of $2.09 billion. A 9% increase in volumes, 2% rise in price and 1% favorable energy pass-through and currency contributed to revenue growth in the quarter.
FY17 Results
The company reported net income from continuing operations of $1.1 billion or $5.16 per share for fiscal 2017, up 3% year over year. For fiscal 2017, adjusted earnings came in at $6.31 per share, up 12% from the previous year.
Sales rose 9% year over year to $8.2 billion for fiscal 2017 on higher volumes, higher energy pass-through and improved pricing.
Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise
Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise
Segmental Highlights
Revenues from the Industrial Gases — America segment grew 8.6% year over year to $953 million in the reported quarter, supported by 7% increase in volumes along with strong hydrogen demand.
Sales from the Industrial Gases — Europe, Middle East, and Africa (EMEA) segment rose 24.3% year over year to $515 million due to 18% higher volumes and 5% favorable currency.
Sales from the Industrial Gases — Asia segment went up 23% year over year to $552 million on the back of 17% increase in volumes and 6% rise in price.
Financial Position
Air Products ended fourth-quarter fiscal 2017 with cash and cash equivalents of $3,273.6 million, a 153.1% year-over-year surge. Total long-term debt fell around 13% year over year to $3,402.4 million.
Outlook
Air Products expects adjusted earnings per share of $1.60-$1.70 for first-quarter fiscal 2018, up 9-16% from the year-ago quarter. For fiscal 2018, Air Products expects adjusted earnings per share of $6.85-$7.05, up 9-12% year over year.
Capital expenditure for fiscal 2018 is expected to be in the range of $1-$1.2 billion.
Price Performance
Air Products’ shares have moved up 15.9% over a year, underperforming the industry’s 33.5% gain.
Zacks Rank & Other Stocks to Consider
Air Products currently carries a Zacks Rank #2 (Buy).
Some other top-ranked companies in the chemical space are FMC Corporation (NYSE:FMC) , Huntsman Corporation (NYSE:HUN) and Albemarle Corporation (NYSE:ALB) .
FMC Corp. has an expected long-term earnings growth rate of 11.3% and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Huntsman has an expected long-term earnings growth rate of 7% and flaunts a Zacks Rank #1.
Albemarle has an expected long-term earnings growth rate of 14.8% and carries a Zacks Rank #2.
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Air Products and Chemicals, Inc. (APD): Free Stock Analysis Report
Albemarle Corporation (ALB): Free Stock Analysis Report
FMC Corporation (FMC): Free Stock Analysis Report
Huntsman Corporation (HUN): Free Stock Analysis Report
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