Air Products (NYSE:APD) shares tumbled more than 8% premarket Monday after the company reported its latest quarterly earnings, missing the top and bottom-line consensus estimate. In addition, its full-year 2024 profit guidance was also lower than expected.
The company reported first-quarter earnings per share of $2.82, $0.18 worse than the analysts' estimate of $3. At the same time, revenue for the quarter came in at $3 billion, down 6% year-on-year and below the consensus estimate of $3.2 billion.
APD's adjusted EBITDA of $1.2 billion was up 8% over the prior year as a result of higher equity affiliates' income, higher volumes, and higher pricing. However, this was partially offset by higher costs.
The company said its sales performance was negatively impacted by an 11% lower energy cost pass-through, which negatively affected sales but had no impact on net income.
APD CEO Seifi Ghasemi also noted that its reported results were lower than expectations, mainly due to a slowdown in manufacturing in Asia, particularly in China; lower helium demand; cost headwinds from a sale of equipment project; and currency devaluation in Argentina.
"We are moving forward to successfully implement our ambitious, long-term growth strategy through our core industrial gases business and as a leader in low-carbon intensity hydrogen to generate a cleaner future for the world," said Ghasemi.
For FY2024 APD sees earnings between $12.20 and $12.50 per share, versus the consensus of $12.96. Meanwhile, for the second quarter of fiscal 2024, Air Products expects its adjusted EPS to be between $2.60 to $2.75.