Air Products (APD) to Report Q4 Earnings: What's in the Offing?
Air Products and Chemicals, Inc. APD is slated to release fourth-quarter fiscal 2023 results before the bell on Nov 7.
The industrial gas giant beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It pulled off a trailing four-quarter earnings surprise of around 1.8%, on average. The company delivered an earnings surprise of around 2.4% in the last reported quarter.
The company is expected to have gained from cost-improvement and productivity initiatives in the fourth quarter. Higher volumes and pricing are also expected to have aided the company's performance despite adverse currency impacts.
Shares of APD have increased 7.3% in the past year compared with a 6.6% decline of the industry.
Image Source: Zacks Investment Research
Let’s see how things have shaped up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for sales for the to-be-reported quarter currently stands at $3,307.5 million, which suggests a decline of 7.4% from the year-ago reported number.
Our estimate for the Americas segment’s revenues is currently pegged at $1,310.6 million, indicating a decline of 15% year over year.
The same for the Asia segment’s revenues is pegged at $903.3 million, which suggests a 5% year-over-year growth.
Our estimate for the Europe segment’s revenues stands at $859.4 million, indicating a 0.5% year-over-year decline.
Factors at Play
Air Products is likely to have benefited from price and volume gains in the fiscal fourth quarter. Investments in high-return projects, new business deals, acquisitions and productivity measures are also likely to have aided the company’s performance.
The company remains focused on its gasification strategy and is executing its growth projects. These initiatives are likely to have contributed to its earnings and cash flows. APD is realizing the benefits of the completion of the second phase of the Jazan project in Saudi Arabia.
Air Products is also driving 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 its margins in the fourth quarter.
However, Air Products is exposed to headwinds from unfavorable currency translation. It is likely to have witnessed negative currency impacts on its sales and margins in the to-be-reported quarter.
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 -0.97%. The Zacks Consensus Estimate for earnings for the fiscal fourth quarter is currently pegged at $3.11. 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 they have the right combination of elements to post an earnings beat this quarter:
IAMGOLD Corporation IAG, which is scheduled to release earnings on Nov 9, has an Earnings ESP of +10.71% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for IAG for the third quarter is currently pegged at a loss of 3 cents.
Kinross Gold Corporation KGC, scheduled to release third-quarter earnings on Nov 8, has an Earnings ESP of +2.96%.
The Zacks Consensus Estimate for Kinross' earnings for the third quarter is currently pegged at 10 cents. KGC currently carries a Zacks Rank #3.
Innospec Inc. IOSP, scheduled to release earnings on Nov 7, has an Earnings ESP of +1.73% and carries a Zacks Rank #3.
The consensus estimate for IOSP’s earnings for the third quarter is currently pegged at $1.45.
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
Kinross Gold Corporation (KGC) : Free Stock Analysis Report
Iamgold Corporation (IAG) : Free Stock Analysis Report
Innospec Inc. (IOSP) : Free Stock Analysis Report
