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Air Products (APD) Earnings and Revenues Surpass Estimates in Q4
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Air Products and Chemicals, Inc. (APD - Free Report) logged earnings from continuing operations of $2.51 per share in fourth-quarter fiscal 2021 (ended Sep 30, 2021), up around 15% from $2.19 recorded in the year-ago quarter. Earnings per share beat the Zacks Consensus Estimate of $2.50. Earnings were driven by favorable volumes, prices, currencies and equity affiliate income.
The industrial gases giant delivered revenues of $2,841.1 million in the quarter, up around 22% year over year. The figure surpassed the Zacks Consensus Estimate of $2,679.8 million.
Volumes rose 9% while pricing increased 3%. The top line was also supported by 2% favorable currency and 8% higher energy pass-through. Volumes were higher as improved hydrogen and merchant demand and new assets more than offset reduced contributions from the Lu'An facility in China. Pricing rose across all three regions in the reported quarter.
Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise
Revenues in the Industrial Gases - America segment were up 22% year over year to $1,115 million in the reported quarter. The upside was driven by increased pricing, higher energy cost pass-through and higher volumes. Volumes were mainly driven by hydrogen and merchant demand.
Revenues in the Industrial Gases - Europe, Middle East, and Africa segment climbed 33% year over year to $674 million. Higher volumes led by hydrogen and merchant demand and new assets drove results in the segment. The segment also witnessed higher pricing and energy cost pass-through.
Revenues in the Industrial Gases - Asia segment rose 6% year over year to $754 million. The upside can be attributed to favorable currency and higher pricing. Volumes were flat as new plants offset lower contributions from Lu'An.
FY21 Results
Earnings (as reported) from continuing operations for fiscal 2021 were $9.12 per share, up around 7% from $8.55 per share a year ago. Revenues rose around 17% year over year to $10,323 million for the full year on increased volumes, higher energy pass-through, favorable currency and higher pricing.
Financials
Air Products ended fiscal 2021 with cash and cash equivalents of around $4,468.9 million, down around 15% year over year. Long-term debt was down roughly 4% year over year to $6,875.7 million.
Outlook
Air Products expects adjusted earnings per share of $10.20-$10.40 for fiscal 2022, up 13-15% over prior-year adjusted earnings per share. For the first quarter of fiscal 2022, it sees adjusted earnings per share of $2.45-$2.55, up 16-20% year over year. The company also expects capital expenditures of $4.5-$5 billion for fiscal 2022.
Price Performance
The company’s shares are down 0.4% in the past year compared with 23.5% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Air Products currently carries a Zacks Rank #3 (Hold).
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Air Products (APD) Earnings and Revenues Surpass Estimates in Q4
Air Products and Chemicals, Inc. (APD - Free Report) logged earnings from continuing operations of $2.51 per share in fourth-quarter fiscal 2021 (ended Sep 30, 2021), up around 15% from $2.19 recorded in the year-ago quarter. Earnings per share beat the Zacks Consensus Estimate of $2.50. Earnings were driven by favorable volumes, prices, currencies and equity affiliate income.
The industrial gases giant delivered revenues of $2,841.1 million in the quarter, up around 22% year over year. The figure surpassed the Zacks Consensus Estimate of $2,679.8 million.
Volumes rose 9% while pricing increased 3%. The top line was also supported by 2% favorable currency and 8% higher energy pass-through. Volumes were higher as improved hydrogen and merchant demand and new assets more than offset reduced contributions from the Lu'An facility in China. Pricing rose across all three regions in the reported quarter.
Air Products and Chemicals, Inc. Price, Consensus and EPS Surprise
Air Products and Chemicals, Inc. price-consensus-eps-surprise-chart | Air Products and Chemicals, Inc. Quote
Segment Highlights
Revenues in the Industrial Gases - America segment were up 22% year over year to $1,115 million in the reported quarter. The upside was driven by increased pricing, higher energy cost pass-through and higher volumes. Volumes were mainly driven by hydrogen and merchant demand.
Revenues in the Industrial Gases - Europe, Middle East, and Africa segment climbed 33% year over year to $674 million. Higher volumes led by hydrogen and merchant demand and new assets drove results in the segment. The segment also witnessed higher pricing and energy cost pass-through.
Revenues in the Industrial Gases - Asia segment rose 6% year over year to $754 million. The upside can be attributed to favorable currency and higher pricing. Volumes were flat as new plants offset lower contributions from Lu'An.
FY21 Results
Earnings (as reported) from continuing operations for fiscal 2021 were $9.12 per share, up around 7% from $8.55 per share a year ago. Revenues rose around 17% year over year to $10,323 million for the full year on increased volumes, higher energy pass-through, favorable currency and higher pricing.
Financials
Air Products ended fiscal 2021 with cash and cash equivalents of around $4,468.9 million, down around 15% year over year. Long-term debt was down roughly 4% year over year to $6,875.7 million.
Outlook
Air Products expects adjusted earnings per share of $10.20-$10.40 for fiscal 2022, up 13-15% over prior-year adjusted earnings per share. For the first quarter of fiscal 2022, it sees adjusted earnings per share of $2.45-$2.55, up 16-20% year over year. The company also expects capital expenditures of $4.5-$5 billion for fiscal 2022.
Price Performance
The company’s shares are down 0.4% in the past year compared with 23.5% rise of the industry.
Zacks Rank & Key Picks
Air Products currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , Steel Dynamics, Inc. (STLD - Free Report) and Methanex Corporation (MEOH - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien has an expected earnings growth rate of 181.7% for the current year. The stock has also rallied around 69% over a year.
Steel Dynamics has a projected earnings growth rate of 477.5% for the current year. The company’s shares have surged around 97% in a year.
Methanex has a projected earnings growth rate of 442% for the current year. The company’s shares have shot up around 52% in a year.