S&P 500 (NYSE:SPY) component Air Products and Chemicals Inc. (NYSE:APD) reported its results for the second 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 Earnings Cheat Sheet for the Second Quarter
Results: Net income for the chemicals-diversified fell to $296 million ($1.38 per share) vs. $304.3 million ($1.39 per share) a year earlier. This is a decline of 2.7% from the year-earlier quarter.
Revenue: Fell 2.4% to $2.34 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Air Products and Chemicals Inc. reported adjusted net income of $1.31 per share. By that measure, the company fell short of mean estimate of $1.37 per share. It fell short of the average revenue estimate of $2.52 billion.
Quoting Management: Commenting on the quarter, John McGlade, chairman, president and chief executive officer, said, “Overall, second quarter volumes were below our expectations, as business activity did not pick up as much as we expected. With Europe in recession, we have taken actions to improve our business portfolio and cost positions. While our volumes were held down by lower demand, we did see positive impact from our pricing efforts and new plants.”
The company’s net income has fallen in each of the last two quarters. In the first quarter, net income fell 7.6% from the year-earlier quarter.
The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of $1.36.
Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next-quarter performance. The average estimate for the third quarter is now $1.54 per share, down from $1.57. For the fiscal year, the average estimate has moved down from $5.98 a share to $5.86 over the last sixty days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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