Air Products and Chemicals Earnings: Investors Don’t Like These Numbers

S&P 500 (NYSE:SPY) component Air Products and Chemicals Inc. (NYSE:APD) reported its results for the fourth quarter. 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.

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Air Products and Chemicals Inc. Earnings Cheat Sheet

Results: Net income for the chemicals-diversified fell to $138.7 million (64 cents per share) vs. $324.8 million ($1.51 per share) a year earlier. This is a decline of 57.3% from the year-earlier quarter.

Revenue: Rose 4% to $2.61 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Air Products and Chemicals Inc. reported adjusted net income of $1.42 per share. By that measure, the company was about in line with expectations as the mean analyst estimate was $1.41 per share. It beat the average revenue estimate of $2.46 billion.

Quoting Management: Commenting on the fiscal year, John McGlade, chairman, president and chief executive officer, said, “The fourth quarter was a continuation of the economic trends that we have seen throughout the year, with global manufacturing growth continuing to slow. This has led to weak volumes in 2012, which we have been able to offset with increased productivity and cost reductions.

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of $1.31 versus a mean estimate of net income of $1.33 per share.

The company has now been profitable for the last nine quarters, and for the last five, profit has risen year-over-year by an average of 0%. The greatest increase was in the third quarter, when there was a 48.4% spike.

Looking Forward: Over the past ninety days, the average estimate for the first quarter of the next fiscal year has fallen from $1.58 per share to $1.51, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At $5.52 per share, the average estimate for the fiscal year has fallen from $5.77 ninety days ago.

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

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