Air Products (APD) Earnings and Revenues Top Estimates in Q4
Air Products and Chemicals, Inc. APD logged earnings from continuing operations of $2.56 per share in fourth-quarter fiscal 2022 (ended Sep 30, 2022), up 2% from $2.51 recorded in the year-ago quarter.
Barring one-time items, earnings came in at $2.89 per share for the reported quarter, up around 15% year over year. It beat the Zacks Consensus Estimate of $2.77.
The industrial gases giant delivered revenues of $3,570 million, up around 26% year over year. The figure beat the Zacks Consensus Estimate of $3,279.7 million.
The company benefited from increased pricing, higher volumes and higher energy cost pass-through in the reported quarter, partly masked by unfavorable currency translation. Volumes were driven by new plants, recovery in hydrogen and improved merchant demand. The company witnessed improved pricing in the three largest regional segments.
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 38% year over year to $1,542 million. The upside was driven by higher pricing and energy cost pass-through as well as increased volumes, partly offset by unfavorable currency swings.
Revenues in the Europe segment rose 34% year over year to $864 million. The segment witnessed higher pricing and energy pass-through, offset by the currency impact. Volumes were stable in the quarter.
Revenues in the Asia segment were up 14% year over year to $860 million. Higher volumes and pricing along with higher energy cost pass-through more than offset the unfavorable currency impact.
Equity affiliates' income in the Middle East & India segment increased to $63 million from $22 million in the prior-year quarter, mainly from the Jazan joint venture.
Fiscal 2022 Results
Earnings from continuing operations (as reported) or full-year fiscal 2022 were $10.08 per share, up from $9.12 per share a year ago. Revenues were $12.7 billion for the fiscal, up around 23% year over year.
Financials
Air Products ended fiscal 2022 with cash and cash equivalents of $2,711 million, down around 39% year over year. Long-term debt was down around 6% year over year to $6,433.8 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 first quarter of fiscal 2023, the company expects adjusted earnings per share in the range of $2.60 -$2.80, suggesting a rise of 5-13% 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 declined 18.6% in the past year compared with a 14.3% fall of the industry.
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Zacks Rank & Other Key Picks
Air Products currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Sociedad Quimica y Minera de Chile S.A. SQM, Ryerson Holding Corporation RYI and Reliance Steel & Aluminum Co. RS.
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 38% in a year. The company currently carries a Zacks Rank #1.
Ryerson Holding, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 74.2% for the current year. The consensus estimate for RYI's earnings for the current year has been revised 3.2% upward in the past 60 days.
Ryerson Holding’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 28.9%. RYI has gained around 15% over a year.
Reliance Steel, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 29.7% for the current year. The Zacks Consensus Estimate for RS's current-year earnings has been revised 0.1% upward in the past 60 days.
Reliance Steel’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13.6%, on average. RS has gained around 24% in a year.
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