Air Products and Chemicals, Inc. (APD Quick QuoteAPD - Free Report) logged earnings from continuing operations of $2.52 per share in first-quarter fiscal 2022 (ended Dec 31, 2021), up 19% from $2.12 recorded in the year-ago quarter. The quarterly earnings per share (EPS) topped the Zacks Consensus Estimate of $2.50.

In the quarter under review, the industrial gases giant delivered revenues of $2,994.2 million, up around 26% year over year. The figure beat the Zacks Consensus Estimate of $2,726.6 million. The top line was driven by higher pricing and volumes as well as increased energy cost pass-through.

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 31% year over year to $1,224 million. The upside was driven by higher pricing and energy cost pass-through as well as increased volumes driven primarily by hydrogen and merchant demand.

Revenues in the Industrial Gases - Europe segment surged 37% year over year to $744 million. Higher volumes led by hydrogen and merchant demand drove results in the segment. The segment also witnessed higher pricing and energy pass-through.

Revenues in the Industrial Gases - Asia segment rose 9% year over year to $780 million. The upside can be attributed to favorable currency, higher volumes and higher pricing.

Revenues in the Industrial Gases – Middle East & India segment increased to $23.7 million from $19.5 million in the prior-year quarter.

Financials

Air Products ended the fiscal first quarter with cash and cash equivalents of around $2,953.7 million, down from the previous-year quarter’s figure of $5.8 billion. The long-term debt was down 1.6% year over year to $6,893.1 million.

Outlook

Air Products expects full-year fiscal 2022 adjusted EPS of $10.20-$10.40, up 13-15% from the prior-year’s adjusted EPS. For the second quarter of fiscal 2022, the company expects EPS in the range of $2.30-$2.40, up 11-15% over second-quarter fiscal 2021 adjusted EPS.

Air Products expects capital expenditures of $4.5 to $5 billion for full-year fiscal 2022.

Price Performance

The company’s shares have gained 10.9% in the past year compared with a 11.6% rise of the industry.

Image Source: Zacks Investment Research

Zacks Rank & Key Picks

Air Products currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB Quick QuoteALB - Free Report) , Nutrien Ltd. (NTR Quick QuoteNTR - Free Report) and AdvanSix Inc. (ASIX Quick QuoteASIX - Free Report) .

Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 51.5% for the current year. The Zacks Consensus Estimate for ALB's earnings for the current year has been revised 5.6% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB has rallied around 36.8% over a year.

Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 53.8% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 17.4% upward in the past 60 days.

Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missing once. It has a trailing four-quarter earnings surprise of roughly 73.5%, on average. NTR has rallied around 34.5% in a year.

AdvanSix has a projected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 5.3% upward in the past 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has surged 71% over a year. The company sports a Zacks Rank #1.