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Air Products (APD) to Post Q4 Earnings: What's in the Cards?
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Air Products and Chemicals, Inc. (APD - Free Report) is slated to release fourth-quarter fiscal 2021 results before the bell on Nov 4. The company is expected to have gained from cost-improvement programs and productivity initiatives in the quarter. However, cost inflation and headwind in the packaged gas business are likely to get reflected in its quarterly performance.
The industrial gases giant missed the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter negative earnings surprise of around 2.7%, on average. The company reported a negative earnings surprise of around 3.4% in the last reported quarter.
Shares of the company have gained 3.1% in the past year compared with 22.6% 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’ fourth-quarter revenues is currently pegged at $2,680 million, suggesting a rise of 15.5% year over year.
The Zacks Consensus Estimate for revenues for the Industrial Gases — Americas segment is currently pegged at $1,058 million, calling for a rise of 16% year over year. The consensus mark for revenues in the Industrial Gases — Asia segment is pegged at $799 million, which suggests 11.9% year-over-year growth.
The Zacks Consensus Estimate for revenues in the Industrial Gases — EMEA segment is $600 million, indicating an 18.8% year-over-year increase.
The consensus mark for revenues in the Industrial Gases — Global segment is pegged at $113 million, which indicates a fall of 1.7% 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 the fiscal fourth quarter. Air Products has also benefited from higher pricing, which is likely to have continued in the fourth quarter.
However, it is likely to have been impacted by some cost inflation in the fourth quarter. The company’s results are likely to reflect higher power and fuel costs in the EMEA segment.
In the fourth quarter, the company is also likely to have witnessed weak packaged gases volumes in Europe.
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 -2.40%. The Zacks Consensus Estimate for earnings for the fiscal fourth quarter is currently pegged at $2.50. 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.
Air Products and Chemicals, Inc. Price and EPS Surprise
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 quarter:
Image: Bigstock
Air Products (APD) to Post Q4 Earnings: What's in the Cards?
Air Products and Chemicals, Inc. (APD - Free Report) is slated to release fourth-quarter fiscal 2021 results before the bell on Nov 4. The company is expected to have gained from cost-improvement programs and productivity initiatives in the quarter. However, cost inflation and headwind in the packaged gas business are likely to get reflected in its quarterly performance.
The industrial gases giant missed the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter negative earnings surprise of around 2.7%, on average. The company reported a negative earnings surprise of around 3.4% in the last reported quarter.
Shares of the company have gained 3.1% in the past year compared with 22.6% rise of the industry.
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for Air Products’ fourth-quarter revenues is currently pegged at $2,680 million, suggesting a rise of 15.5% year over year.
The Zacks Consensus Estimate for revenues for the Industrial Gases — Americas segment is currently pegged at $1,058 million, calling for a rise of 16% year over year. The consensus mark for revenues in the Industrial Gases — Asia segment is pegged at $799 million, which suggests 11.9% year-over-year growth.
The Zacks Consensus Estimate for revenues in the Industrial Gases — EMEA segment is $600 million, indicating an 18.8% year-over-year increase.
The consensus mark for revenues in the Industrial Gases — Global segment is pegged at $113 million, which indicates a fall of 1.7% 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 the fiscal fourth quarter. Air Products has also benefited from higher pricing, which is likely to have continued in the fourth quarter.
However, it is likely to have been impacted by some cost inflation in the fourth quarter. The company’s results are likely to reflect higher power and fuel costs in the EMEA segment.
In the fourth quarter, the company is also likely to have witnessed weak packaged gases volumes in Europe.
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 -2.40%. The Zacks Consensus Estimate for earnings for the fiscal fourth quarter is currently pegged at $2.50. 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.
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 quarter:
The Chemours Company (CC - Free Report) , scheduled to release earnings on Nov 4, has an Earnings ESP of +1.26% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 3, has an Earnings ESP of +8.73% and carries a Zacks Rank #3.
Franco-Nevada Corporation (FNV - Free Report) , scheduled to release earnings on Nov 3, has an Earnings ESP of +0.38% and carries a Zacks Rank #3.