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.
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third-party research service company (the “Reviewer”) represented by a credentialed financial analyst [for further information on analyst credentials, please email firstname.lastname@example.org. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.