Air Products & Chemicals
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Air Products & Chemicals missed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly, and earnings per share dropped.
Margins shrank across the board.
Air Products & Chemicals recorded revenue of $2.4 billion. The 13 analysts polled by S&P Capital IQ expected to see sales of $2.5 billion. Sales were 1.3% higher than the prior-year quarter's $2.4 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.36. The 18 earnings estimates compiled by S&P Capital IQ averaged $1.36 per share on the same basis. GAAP EPS of $1.16 for Q1 were 5.7% lower than the prior-year quarter's $1.23 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 26.8%, 130 basis points worse than the prior-year quarter. Operating margin was 15.9%, 100 basis points worse than the prior-year quarter. Net margin was 10.2%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.6 billion. On the bottom line, the average EPS estimate is $1.48.
Next year's average estimate for revenue is $10.6 billion. The average EPS estimate is $6.03.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 653 members out of 673 rating the stock outperform, and 20 members rating it underperform. Among 203 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 198 give Air Products & Chemicals a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Air Products & Chemicals is outperform, with an average price target of $98.71.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.