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Air Products (APD) to Post Q3 Earnings: What's in the Cards?
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Air Products and Chemicals, Inc. (APD - Free Report) is slated to release third-quarter fiscal 2021 results before the bell on Aug 9. The company is expected to have gained from cost-improvement programs and productivity initiatives in the quarter. However, the impacts of the coronavirus pandemic and some volume pressure are likely to get reflected in its quarterly performance.
The industrial gases giant missed the Zacks Consensus Estimate for earnings in all the last four quarters. It has a trailing four-quarter negative earnings surprise of 2.32%, on average. The company delivered a negative earnings surprise of around 2.4% in the last reported quarter.
Shares of the company inched up 1% in the past year compared with 32.2% rise of the industry.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for Air Products’ third-quarter revenues is currently pegged at $2,563 million, suggesting a rise of 24.1% year over year.
The Zacks Consensus Estimate for revenues for the Industrial Gases — Americas segment is currently pegged at $1,022 million, calling for a rise of 20.2% year over year. The consensus mark for revenues in the Industrial Gases — Asia segment is pegged at $745 million, which suggests 14.3% year-over-year growth.
The Zacks Consensus Estimate for revenues in the Industrial Gases — EMEA segment stands at $540 million, indicating 25.6% year-over-year increase.
The consensus mark for revenues for the Industrial Gases — Global segment is pegged at $84 million, which indicates a rise of 7.7% year over year.
Some Factors at Play
Air Products’ productivity actions, investments in high-return projects and benefits of acquisitions and new plants are expected to get reflected in the company’s results in the to-be-reported quarter.
Moreover, Air Products is boosting productivity to improve its cost structure. It is seeing the positive impacts of its productivity actions. Benefits from additional productivity and cost-improvement programs are likely to have supported margins in fiscal third quarter. Air Products has also been benefiting from higher pricing, which is expected to have continued in the third quarter.
However, it is likely to have been impacted by some volume pressure in the third quarter. The company’s results are likely to reflect the unfavorable impacts from the coronavirus pandemic. Some volume pressure is likely to have continued in the fiscal third quarter amid disruptions from the pandemic. In the third quarter, the company is likely to have witnessed weak packaged gases volumes in Europe and volume pressure in Asia as well.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Air Products this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Air Products is -0.59%. The Zacks Consensus Estimate for earnings for the fiscal third quarter is currently pegged at $2.39. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies in the basic materials space you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this time around.
Nutrien Ltd. (NTR - Free Report) , scheduled to release earnings on Aug 9, has an Earnings ESP of +1.44% and a Zacks Rank #1.
GrowGeneration Corp. (GRWG - Free Report) , scheduled to release earnings on Aug 12, has an Earnings ESP of +3.45% and carries a Zacks Rank #2.
Sociedad QuImica y Minera de Chile S.A. (SQM - Free Report) , scheduled to release earnings on Aug 18, has an Earnings ESP of +21.88% and carries a Zacks Rank #2.
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Air Products (APD) to Post Q3 Earnings: What's in the Cards?
Air Products and Chemicals, Inc. (APD - Free Report) is slated to release third-quarter fiscal 2021 results before the bell on Aug 9. The company is expected to have gained from cost-improvement programs and productivity initiatives in the quarter. However, the impacts of the coronavirus pandemic and some volume pressure are likely to get reflected in its quarterly performance.
The industrial gases giant missed the Zacks Consensus Estimate for earnings in all the last four quarters. It has a trailing four-quarter negative earnings surprise of 2.32%, on average. The company delivered a negative earnings surprise of around 2.4% in the last reported quarter.
Shares of the company inched up 1% in the past year compared with 32.2% rise of the industry.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for Air Products’ third-quarter revenues is currently pegged at $2,563 million, suggesting a rise of 24.1% year over year.
The Zacks Consensus Estimate for revenues for the Industrial Gases — Americas segment is currently pegged at $1,022 million, calling for a rise of 20.2% year over year. The consensus mark for revenues in the Industrial Gases — Asia segment is pegged at $745 million, which suggests 14.3% year-over-year growth.
The Zacks Consensus Estimate for revenues in the Industrial Gases — EMEA segment stands at $540 million, indicating 25.6% year-over-year increase.
The consensus mark for revenues for the Industrial Gases — Global segment is pegged at $84 million, which indicates a rise of 7.7% year over year.
Some Factors at Play
Air Products’ productivity actions, investments in high-return projects and benefits of acquisitions and new plants are expected to get reflected in the company’s results in the to-be-reported quarter.
Moreover, Air Products is boosting productivity to improve its cost structure. It is seeing the positive impacts of its productivity actions. Benefits from additional productivity and cost-improvement programs are likely to have supported margins in fiscal third quarter. Air Products has also been benefiting from higher pricing, which is expected to have continued in the third quarter.
However, it is likely to have been impacted by some volume pressure in the third quarter. The company’s results are likely to reflect the unfavorable impacts from the coronavirus pandemic. Some volume pressure is likely to have continued in the fiscal third quarter amid disruptions from the pandemic. In the third quarter, the company is likely to have witnessed weak packaged gases volumes in Europe and volume pressure in Asia as well.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Air Products this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Air Products is -0.59%. The Zacks Consensus Estimate for earnings for the fiscal third quarter is currently pegged at $2.39. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Air Products currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Air Products and Chemicals, Inc. Price and EPS Surprise
Air Products and Chemicals, Inc. price-eps-surprise | Air Products and Chemicals, Inc. Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this time around.
Nutrien Ltd. (NTR - Free Report) , scheduled to release earnings on Aug 9, has an Earnings ESP of +1.44% and a Zacks Rank #1.
GrowGeneration Corp. (GRWG - Free Report) , scheduled to release earnings on Aug 12, has an Earnings ESP of +3.45% and carries a Zacks Rank #2.
Sociedad QuImica y Minera de Chile S.A. (SQM - Free Report) , scheduled to release earnings on Aug 18, has an Earnings ESP of +21.88% and carries a Zacks Rank #2.