Yahoo Finance Air Products (APD) to Post Q2 Earnings: What's in the Cards?
Air Products and Chemicals, Inc. APD is scheduled to report results for the second quarter of fiscal 2023 before the opening bell on May 9.
The company surpassed Zacks Consensus Estimate for earnings in three of the last four quarters, while missed once, with the average surprise being 0.7%.
The firm’s shares have jumped 23.4% in the past year against the industry’s fall of 7.8%.
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Zacks Model
Our proven model predicts 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. This is just the case here, as elaborated below.
Earnings ESP: Earnings ESP for Air Products is +2.25%.This is because the Most Accurate Estimate is currently pegged at $2.70 while the Zacks Consensus Estimate stands at $2.64. 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.
What Do the Estimates Say?
The company expects adjusted earnings per share for the second quarter to be in the range of $2.50-$2.70, implying a rise of 7-15% from the year-ago reported number.
The Zacks Consensus Estimate for sales for the to-be-reported quarter currently stands at $3,020 million, which suggests a rise of 2.5% from the year-ago reported number.
The Zacks Consensus Estimate for the Industrial Gases – Americas Segment’s revenues is currently pegged at $1,201 million, implying a rise of 1.2% year over year.
The Zacks Consensus Estimate for the Industrial Gases – Asia Segment’s revenues currently stands at $733 million, suggesting a decline of 2.4% from the year-ago reported number.
The Zacks Consensus Estimate for the Industrial Gases – Europe Segment’s revenues is currently pegged at $766 million, indicating a rise of 3.7% year over year.
Factors to Note
Air Products is expected to have benefited from investments in high-return projects, new business deals, acquisitions and productivity initiatives in the quarter to be reported. It is carrying out its growth programs and remains committed to its gasification strategy. These initiatives are anticipated to have contributed favorably to its earnings and cash flows. The positive impact of higher pricing is also expected to reflect on its performance.
Air Products is driving 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 its margins in the fiscal second quarter.
However, cost inflation presents problems for Air Products. In its merchant business, rising power prices are being observed. Due to the significantly elevated natural gas and power prices, the company is experiencing considerably higher energy costs, especially in EMEA. It is anticipated to have experienced sustained difficulties due to the rise in the cost of power. Higher power costs are likely to have adversely impacted its second-quarter margins.
The company is facing headwinds from unfavorable currency translation as well. Significant currency headwinds were experienced in the last reported quarter. A stronger U.S. dollar triggered unfavorable currency translation, which hurt its sales by 6% and earnings per share by 15 cents in the quarter. APD is expected to have faced sustained headwinds from adverse currency swings in the second quarter.
Air Products and Chemicals, Inc. Price and EPS Surprise
Air Products and Chemicals, Inc. price-eps-surprise | Air Products and Chemicals, Inc. Quote
Other Stocks That Warrant a Look
Here are some other companies in the basic materials space you may consider, as our model shows these, too, have the right combination of elements to post an earnings beat this quarter:
Sandstrom Gold Ltd. SAND, which is scheduled to release earnings on May 10, has an Earnings ESP of +4.76% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for SAND’s first-quarter earnings has been revised 100% upward in the past 60 days. The consensus estimate for its earnings for the first quarter is currently pegged at 4 cents.
Centerra Gold Inc. CGAU, which is scheduled to release earnings on May 15, has an Earnings ESP of +192.31% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for CGAU’s first-quarter earnings has been revised 140% upward in the past 60 days. The consensus estimate for its earnings for the quarter is currently pegged at a loss of 4 cents.
Compass Minerals International, Inc. CMP, slated to release earnings on May 9, has an Earnings ESP of +16.98%.
The Zacks Consensus Estimate for Compass Minerals’ earnings for the fiscal second quarter is pegged at 53 cents. CMP currently carries a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Air Products and Chemicals, Inc. (APD) : Free Stock Analysis Report
Sandstorm Gold Ltd (SAND) : Free Stock Analysis Report
Compass Minerals International, Inc. (CMP) : Free Stock Analysis Report
Centerra Gold Inc. (CGAU) : Free Stock Analysis Report
