S&P 500 (NYSE:SPY) component Air Prods & Chems (NYSE:APD) will unveil its latest earnings on Friday, October 19, 2012. 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 profit of $1.44 per share, a decline of 4.6% 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 $1.51. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.44 during the last month. For the year, analysts are projecting net income of $5.42 per share, a decline of 5.4% from last year.
Past Earnings Performance: After missing estimates in the previous quarter by 2 cents in the second quarter, the company met analysts’ expectations last quarter. It reported profit of $1.41 last quarter.
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A Look Back: In the third quarter, profit rose 48.4% to $484.5 million ($2.26 a share) from $326.5 million ($1.50 a share) the year earlier, meeting analyst expectations. Revenue fell 9.2% to $2.34 billion from $2.58 billion.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.42 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.
Stock Price Performance: Between September 17, 2012 and October 15, 2012, the stock price dropped $3.33 (-3.9%), from $85.62 to $82.29. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 9, 2012, when shares rose for six straight days, increasing 4.5% (+$3.64) over that span. It saw one of its worst periods between September 17, 2012 and September 27, 2012 when shares fell for nine straight days, dropping 3.5% (-$2.97) over that span.
Heading into this earnings announcement, the company is trying build on some positive momentum from last quarter’s income increase. After net income declines in the first quarter and second quarter, profit rose in the third quarter.
On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 6.3% in the second quarter and dropped again in the third quarter.
Wall St. Revenue Expectations: On average, analysts predict $2.52 billion in revenue this quarter, a decline of 3.4% from the year-ago quarter. Analysts are forecasting total revenue of $9.59 billion for the year, a decline of 4.9% from last year’s revenue of $10.08 billion.
Analyst Ratings: There are nine out of 16 analysts surveyed (56.3%) rating Air Prods & Chems a buy.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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