Air Prods & Chems First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Air Prods & Chems (NYSE:APD) will unveil its latest earnings on Wednesday, January 23, 2013. Air Products and Chemicals is a global supplier of gases and chemicals for industrial use. It provides customers in the technology, energy, and healthcare sectors with a variety of services and solutions, including atmospheric gases and semiconductor materials.

Air Prods & Chems Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.29 per share, a decline of 5.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.41. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.29 during the last month. Analysts are projecting profit to rise by 6.3% versus last year to $5.74.

Past Earnings Performance: Last quarter, the company fell short of estimates by 0 cents, coming in at profit of $1.42 per share against a mean estimate of net income of $1.44. The company fell in line with expectations in the third quarter of the last fiscal year.

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A Look Back: In the fourth quarter of the last fiscal year, profit fell 57.3% to $138.7 million (65 cents a share) from $324.8 million ($1.51 a share) the year earlier, missing analyst expectations. Revenue fell 0.2% to $2.61 billion from $2.61 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.27 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.42 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 26.1% to $2.69 billion while assets rose 12.6% to $3.42 billion.

Wall St. Revenue Expectations: On average, analysts predict $2.49 billion in revenue this quarter, a rise of 2.9% from the year-ago quarter. Analysts are forecasting total revenue of $10.43 billion for the year, a rise of 8.5% from last year’s revenue of $9.61 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 6.3% in the second quarter of the last fiscal year and 9.2% in third quarter of the last fiscal year before falling again in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: There are eight out of 15 analysts surveyed (53.3%) rating Air Prods & Chems a buy.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)