Air Products & Chemicals
The 10-second takeaway
For the quarter ended June 30 (Q3), Air Products & Chemicals met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share shrank significantly.
Margins shrank across the board.
Air Products & Chemicals reported revenue of $2.55 billion. The 14 analysts polled by S&P Capital IQ foresaw revenue of $2.53 billion on the same basis. GAAP reported sales were 8.9% 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 $1.36. The 20 earnings estimates compiled by S&P Capital IQ predicted $1.36 per share. GAAP EPS of $1.36 for Q3 were 40% lower than the prior-year quarter's $2.25 per share. (The prior-year quarter included $0.59 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 26.4%, 130 basis points worse than the prior-year quarter. Operating margin was 14.4%, 250 basis points worse than the prior-year quarter. Net margin was 11.3%, 940 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.69 billion. On the bottom line, the average EPS estimate is $1.47.
Next year's average estimate for revenue is $10.26 billion. The average EPS estimate is $5.50.
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 187 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 181 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 $96.67.
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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.