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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