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Air Products (APD) to Post Q1 Earnings: What's in Store?
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Air Products and Chemicals, Inc. (APD - Free Report) is slated to release first-quarter fiscal 2022 results before the bell on Feb 4. The company is expected to have gained from improved demand, cost-improvement programs and productivity initiatives in the quarter. However, the impacts of energy cost inflation are likely to get reflected in its quarterly performance.
The industrial gases giant missed the Zacks Consensus Estimate for earnings in three of the last four quarters, while registering a beat once. It has a trailing four-quarter negative earnings surprise of around 2.1%, on average. The company reported an earnings surprise of around 0.4% in the last reported quarter.
Shares of the company have gained 2.9% in the past year compared with a 9.3% 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’ first-quarter revenues is currently pegged at $2,721 million, suggesting a rise of 14.5% year over year.
The Zacks Consensus Estimate for revenues for the Industrial Gases — Americas segment is currently pegged at $1,093 million, calling for a rise of 17.2% year over year. The consensus mark for revenues in the Industrial Gases — Asia segment is pegged at $780 million, which suggests 8.6% year-over-year growth.
The Zacks Consensus Estimate for revenues in the Industrial Gases — EMEA segment is $650 million, indicating a 15.5% year-over-year increase.
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. Improved hydrogen and merchant demand is also likely to have supported volumes.
The company 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 support its margins in the fiscal first quarter. Air Products is also likely to have benefited from higher pricing.
However, it is likely to have been impacted by the energy cost inflation in the first quarter. The company’s results are likely to reflect higher power and fuel costs in the EMEA segment.
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 -0.10%. The Zacks Consensus Estimate for earnings for the fiscal first 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 other companies in the basic materials space you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for Huntsman's fourth-quarter earnings has been revised 0.8% upward in the past 60 days. The consensus estimate for HUN’s earnings for the quarter is currently pegged at 88 cents.
CF Industries Holdings, Inc. (CF - Free Report) , expected to release earnings on Feb 16, has an Earnings ESP of +9.44% and carries a Zacks Rank #2.
The consensus estimate for CF Industries' fourth-quarter earnings has been revised 31.5% upward in the past 60 days. The Zacks Consensus Estimate for CF’s quarterly earnings is pegged at $3.25.
Nutrien Ltd. (NTR - Free Report) , scheduled to release earnings on Feb 16, has an Earnings ESP of +0.36% and sports a Zacks Rank #1.
The Zacks Consensus Estimate for Nutrien’s fourth-quarter earnings has been revised 17.4% upward in the past 60 days. The consensus estimate for NTR’s earnings for the quarter is currently pegged at $2.31.
Image: Bigstock
Air Products (APD) to Post Q1 Earnings: What's in Store?
Air Products and Chemicals, Inc. (APD - Free Report) is slated to release first-quarter fiscal 2022 results before the bell on Feb 4. The company is expected to have gained from improved demand, cost-improvement programs and productivity initiatives in the quarter. However, the impacts of energy cost inflation are likely to get reflected in its quarterly performance.
The industrial gases giant missed the Zacks Consensus Estimate for earnings in three of the last four quarters, while registering a beat once. It has a trailing four-quarter negative earnings surprise of around 2.1%, on average. The company reported an earnings surprise of around 0.4% in the last reported quarter.
Shares of the company have gained 2.9% in the past year compared with a 9.3% 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’ first-quarter revenues is currently pegged at $2,721 million, suggesting a rise of 14.5% year over year.
The Zacks Consensus Estimate for revenues for the Industrial Gases — Americas segment is currently pegged at $1,093 million, calling for a rise of 17.2% year over year. The consensus mark for revenues in the Industrial Gases — Asia segment is pegged at $780 million, which suggests 8.6% year-over-year growth.
The Zacks Consensus Estimate for revenues in the Industrial Gases — EMEA segment is $650 million, indicating a 15.5% year-over-year increase.
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. Improved hydrogen and merchant demand is also likely to have supported volumes.
The company 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 support its margins in the fiscal first quarter. Air Products is also likely to have benefited from higher pricing.
However, it is likely to have been impacted by the energy cost inflation in the first quarter. The company’s results are likely to reflect higher power and fuel costs in the EMEA segment.
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 -0.10%. The Zacks Consensus Estimate for earnings for the fiscal first 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 other companies in the basic materials space you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Huntsman Corporation (HUN - Free Report) , scheduled to release earnings on Feb 15, has an Earnings ESP of +0.09% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Huntsman's fourth-quarter earnings has been revised 0.8% upward in the past 60 days. The consensus estimate for HUN’s earnings for the quarter is currently pegged at 88 cents.
CF Industries Holdings, Inc. (CF - Free Report) , expected to release earnings on Feb 16, has an Earnings ESP of +9.44% and carries a Zacks Rank #2.
The consensus estimate for CF Industries' fourth-quarter earnings has been revised 31.5% upward in the past 60 days. The Zacks Consensus Estimate for CF’s quarterly earnings is pegged at $3.25.
Nutrien Ltd. (NTR - Free Report) , scheduled to release earnings on Feb 16, has an Earnings ESP of +0.36% and sports a Zacks Rank #1.
The Zacks Consensus Estimate for Nutrien’s fourth-quarter earnings has been revised 17.4% upward in the past 60 days. The consensus estimate for NTR’s earnings for the quarter is currently pegged at $2.31.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.