Air Products & Chemicals
The 10-second takeaway
For the quarter ended June 30 (Q3), Air Products & Chemicals missed estimates on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share improved significantly.
Margins improved across the board.
Air Products & Chemicals reported revenue of $2.34 billion. The 11 analysts polled by S&P Capital IQ anticipated sales of $2.45 billion on the same basis. GAAP reported sales were 9.2% lower than the prior-year quarter's $2.58 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.41. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.41 per share. GAAP EPS of $2.25 for Q3 were 50% higher than the prior-year quarter's $1.50 per share. (The prior-year quarter included $0.04 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.7%, 70 basis points better than the prior-year quarter. Operating margin was 17.0%, 100 basis points better than the prior-year quarter. Net margin was 20.7%, 800 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.55 billion. On the bottom line, the average EPS estimate is $1.50.
Next year's average estimate for revenue is $9.75 billion. The average EPS estimate is $5.52.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 664 members out of 682 rating the stock outperform, and 18 members rating it underperform. Among 157 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 153 give Air Products & Chemicals a green thumbs-up, and four 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 $98.75.
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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.
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