Air Products & Chemicals
The 10-second takeaway
For the quarter ended March 31 (Q2), Air Products & Chemicals missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share contracted. GAAP earnings per share was unchanged.
Gross margins increased, operating margins shrank, net margins shrank.
Air Products & Chemicals chalked up revenue of $2.48 billion. The 10 analysts polled by S&P Capital IQ expected sales of $2.60 billion on the same basis. GAAP reported sales were 6.0% higher than the prior-year quarter's $2.34 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 $1.37. The 17 earnings estimates compiled by S&P Capital IQ anticipated $1.37 per share. Non-GAAP EPS of $1.37 for Q2 were 1.4% lower than the prior-year quarter's $1.39 per share. (The prior-year quarter included $0.08 per share in earnings from discontinued operations.) GAAP EPS of $1.38 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.0%, 20 basis points better than the prior-year quarter. Operating margin was 15.7%, 30 basis points worse than the prior-year quarter. Net margin was 11.7%, 90 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.60 billion. On the bottom line, the average EPS estimate is $1.48.
Next year's average estimate for revenue is $10.48 billion. The average EPS estimate is $5.71.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 677 members out of 697 rating the stock outperform, and 20 members rating it underperform. Among 173 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 167 give Air Products & Chemicals a green thumbs-up, and six 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 $92.47.
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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 position in any of the stocks mentioned. 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.