Stock Monitor: Valhi Post Earnings Reporting
LONDON, UK / ACCESSWIRE / November 27, 2017 / Active-Investors free earnings report on Praxair, Inc. (NYSE: PX) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=PX. The Company reported its third quarter fiscal 2017 operating results on October 26, 2017. The gas supplier outperformed top- and bottom-line expectations and also provided guidance for the upcoming quarter and the fiscal year. Register today and get free access to our complimentary member's area where many more reports are available: www.active-investors.com/registration-sg.
Active-Investors.com is currently working on the research report for Valhi, Inc. (NYSE: VHI), which also belongs to the Basic Materials sector as the Company Praxair. Do not miss out and become a member today for free to access this upcoming report at: www.active-investors.com/registration-sg/?symbol=VHI.
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Praxair most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at: www.active-investors.com/registration-sg/?symbol=PX.
Earnings Highlights and Summary
Praxair's sales were $2.92 billion in Q3 2017, 8% above the $2.72 billion reported in Q3 2016. After adjusting for positive currency translation and cost pass-through, the Company's sales grew 6% on a y-o-y basis, driven by higher volumes across all geographic segments including new project start-ups, growth in all end-markets, and price attainment. Praxair's revenue numbers topped analysts' expectations of $2.87 billion.
Praxair's reported operating profit surged 26% to $626 million in Q3 2017 compared to $497 million in Q3 2016. Excluding the impact of transaction and other costs, the Company's adjusted operating profit advanced 8% to $642 million on a y-o-y basis. Praxair's operating profit as a percentage of sales was 21.4%, and adjusted operating profit as a percentage of sales was 22.0%. The Company's earnings before interest, tax, depreciation, and amortization (EBITDA) margin was 32.0%, while adjusted EBITDA margin was 32.6% in the reported quarter.
Praxair reported a net income and diluted earnings per share (EPS) of $419 million and $1.45, respectively, in Q3 2017 compared to a net income of $339 million, or $1.19 per diluted share, in Q3 2016. The Company's reported quarter results included transaction and other costs of $0.05 diluted EPS, primarily related to the proposed merger with Linde AG. Excluding this charge, Praxair's adjusted net income and diluted EPS were $433 million and $1.50, respectively, versus adjusted net income of $405 million, or $1.41 per share, in the year earlier same quarter. The Company's earnings beat Wall Street's estimates of $1.44 per share.
During Q3 2017, Praxair's North America segment's sales were $1.52 billion, up 4% on a y-o-y basis, excluding cost-pass through and currency translation. The segment's sales growth was driven mainly by stronger volumes to the electronics, aerospace, metals, and food & beverage end-markets and higher price. The North America segment's operating profit was $386 million for the reported quarter, up 6% on a y-o-y basis.
For Q3 2017, Praxair's Europe region segment's sales were $407 million, 11% above the prior year's comparable quarter. Excluding currency and cost pass-through, the segment's sales grew 5% on a y-o-y basis, due to higher volumes, primarily led by the metals, food & beverage, and manufacturing end-markets and higher price. The Europe region segment's operating profit was $78 million, 8% higher on a y-o-y basis.
In Q3 2017, Praxair's South America segment's sales grew 3% to $389 million on a y-o-y basis. Excluding positive currency translation, this segment's sales increased 2% versus the prior year's corresponding period, driven by higher volumes to chemicals and metals end-markets and project start-ups. Praxair's South America segment's operating profit was $63 million.
During Q3 2017, Praxair's Asia segment's sales were $451 million, up 15% from the prior year's same period, driven by higher volumes in China, Korea, and India, project start-ups, and a 2% price attainment, driven mostly by China. The segment's operating profit surged 29% to $88 million on a y-o-y basis.
Praxair's Surface Technologies segment had sales of $157 million in Q3 2017, up 4% excluding positive currency impact. The sales growth was driven primarily by aerospace coatings. The segment's operating profit was $27 million in the reported quarter.
Praxair generated strong third-quarter cash flow from operations of $794 million, or 27% of sales. After capital expenditure of $320 million, the Company's free cash flow was $474 million for the reported quarter, up 15% on a y-o-y basis. Praxair paid $225 million in dividends and net debt decreased by $202 million.
For the fourth quarter of FY17, Praxair is forecasting diluted EPS to be in the range of $1.45 to $1.50, excluding transaction costs related to the proposed merger.
For the full-year FY17, Praxair is estimating adjusted diluted EPS to be in the band of $5.78 to $5.83, with the midpoint up $0.12 versus the previous guidance. The Company's full-year capital expenditure is expected to be approximately $1.4 billion.
Stock Performance Snapshot
November 24, 2017 - At Friday's closing bell, Praxair's stock marginally rose 0.76%, ending the trading session at $152.88.
Volume traded for the day: 807.79 thousand shares.
Stock performance in the last month – up 6.45%; previous three-month period – up 15.45%; past twelve-month period – up 28.78%; and year-to-date – up 30.45%
After last Friday's close, Praxair's market cap was at $43.80 billion.
Price to Earnings (P/E) ratio was at 27.19.
The stock has a dividend yield of 2.06%.
The stock is part of the Basic Materials sector, categorized under the Chemicals - Major Diversified industry. This sector was up 0.3% at the end of the session.
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