Air Products and Chemicals, Inc. APD is raising product pricing, surcharges and monthly service charges for merchant customers in North America. The price hike is effective Feb 1, 2020 or as contracts permit.
The pricing adjustment includes up to 15% hike in prices of liquid and bulk hydrogen. Prices of liquid argon will rise up to 20%. Liquid nitrogen and liquid oxygen prices will also increase up to 10%. Prices for liquid carbon dioxide and monthly service charges will also rise up to 10%.
Air Products also stated that certain price adjustments may be outside the above-mentioned ranges based on specific situations.
Air Products is making these price adjustments in response to higher sourcing, production and delivery costs as well as support sustained investments in security, reliability and safety.
The company’s shares have rallied 45.6% in the past year against the industry’s decline of 29.6%.
Last month, the company reported first-quarter fiscal 2020 earnings from continuing operations of $2.14 per share, up 36% from $1.57 recorded in the year-ago quarter. Moreover, earnings per share surpassed the Zacks Consensus Estimate of $2.08.
Revenues improved 1% year over year to $2,254.7 million for the fiscal first quarter. Moreover, the top line beat the Zacks Consensus Estimate of $2,240.7 million.
For fiscal 2020, Air Products continues to expect adjusted earnings in the range $9.35-$9.60 per share, which reflects year-over-year growth of 14-17%.
The company also expects adjusted earnings to be in the band of $2.10 to $2.20 per share for second-quarter fiscal 2020, up 9-15% year over year.
Air Products and Chemicals, Inc. Price and Consensus
Air Products and Chemicals, Inc. price-consensus-chart | Air Products and Chemicals, Inc. Quote
Zacks Rank & Stocks to Consider
Air Products currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Daqo New Energy Corp. DQ, Royal Gold, Inc. RGLD and Commercial Metals Company CMC.
Daqo New Energy has a projected earnings growth rate of 326.3% for 2020. The company’s shares have rallied 51.3% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Royal Gold has an estimated earnings growth rate of 83.5% for fiscal 2020. It currently flaunts a Zacks Rank #1. The company’s shares have rallied 28.4% in a year.
Commercial Metals has a Zacks Rank #2 (Buy) and a projected earnings growth rate of 20.2% for 2020. The company’s shares have rallied 16.4% in a year.
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