Air Products & Chemicals
The 10-second takeaway
For the quarter ended March 31 (Q2), Air Products & Chemicals missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped.
Gross margins contracted, operating margins dropped, and net margins improved.
Air Products & Chemicals tallied revenue of $2.34 billion. The 13 analysts polled by S&P Capital IQ predicted revenue of $2.45 billion on the same basis. GAAP reported sales were 6.3% lower than the prior-year quarter's $2.50 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.39. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.35 per share on the same basis. GAAP EPS of $1.38 for Q2 were 0.7% lower than the prior-year quarter's $1.39 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.8%, 110 basis points worse than the prior-year quarter. Operating margin was 12.3%, 440 basis points worse than the prior-year quarter. Net margin was 12.6%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.58 billion. On the bottom line, the average EPS estimate is $1.53.
Next year's average estimate for revenue is $10.11 billion. The average EPS estimate is $5.82.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 656 members out of 678 rating the stock outperform, and 22 members rating it underperform. Among 176 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 173 give Air Products & Chemicals a green thumbs-up, and three 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 $100.88.
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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.