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Air Products & Chemicals Beats on Revenue, Matches Expectations on EPS

By Seth Jayson - Updated Apr 7, 2017 at 12:17PM

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Just the facts, Fool.

Air Products & Chemicals (NYSE: APD) reported earnings on Oct. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Air Products & Chemicals beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
Air Products & Chemicals booked revenue of $2.61 billion. The 13 analysts polled by S&P Capital IQ hoped for a top line of $2.51 billion on the same basis. GAAP reported sales were 0.2% lower than the prior-year quarter's $2.61 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.42. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.43 per share. GAAP EPS of $0.65 for Q4 were 57% lower than the prior-year quarter's $1.51 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 26.2%, 60 basis points worse than the prior-year quarter. Operating margin was 15.7%, 60 basis points worse than the prior-year quarter. Net margin was 5.3%, 710 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.50 billion. On the bottom line, the average EPS estimate is $1.29.

Next year's average estimate for revenue is $10.56 billion. The average EPS estimate is $5.70.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 676 members out of 695 rating the stock outperform, and 19 members rating it underperform. Among 165 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 160 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 $95.12.

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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. The Motley Fool has no positions in the stocks mentioned above. 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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