Air Products and Chemicals stock drops on Q1 earnings miss
Shares of Air Products and Chemicals (APD) fell sharply after the company reported disappointing fiscal first-quarter earnings results and reduced its 2024 outlook.
Air Products missed expectations on both the top and bottom lines for the first-quarter. Revenue came in at $2.99 billion, below analyst estimates of $3.20 billion. Adjusted EPS also fell short at $2.82 versus expectations of $3.01.
The company cited a manufacturing slowdown in China as a key factor behind the weak quarterly performance.
Yahoo Finance's Julie Hyman and Josh Lipton break down the details of this trending ticker.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Angel Smith
Video Transcript
JOSH LIPTON: Meanwhile, finally here, take out shares of Air Products and Chemicals in the red today following an earnings miss, a sales slump. The company has also cut its forecast for 2024, now expecting earnings between $1,220 a share and $1,250 a share. So that stock's in the red today, Julie.
Q1, they missed on the bottom and the top relative to consensus. They cut their outlook for the year's adjusted earnings per share. So what they're seeing $1,220 to $1,250, the Street was close to $1,298. The company saying the results were lower than expectations. Mostly, Julie, they are calling out a slowdown in manufacturing in Asia, particularly in China. We know the economy over there has been weak. That is a theme we've heard of course, from a lot of different companies this earnings season.
JULIE HYMAN: Yeah, most definitely. And the stock, by the way, that drop is the biggest we've seen intraday since March of 2020. And as you say, it comes back to these concerns over growth in Asia, in China specifically. As I mentioned earlier, we're seeing materials as the worst performing group in the S&P 500 today. That's due in part to Air Products, which is used in a lot of industrial and manufacturing processes. And so you've got that read through for Asia and the little bit of a pressure because of that.
JOSH LIPTON: The stock's down today down about 20% over the past 12 months here.
