Air Products & Chemicals Inc. (NYSE:APD) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Air Products & Chemicals Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 4.58% to $1.37 in the quarter versus EPS of $1.31 in the year-earlier quarter.
Revenue: Rose 5.96% to $2.48 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Air Products & Chemicals Inc. reported adjusted EPS income of $1.37 per share. By that measure, the company missed the mean analyst estimate of $1.37. It missed the average revenue estimate of $2.59 billion.
Quoting Management: Commenting on the second quarter, John McGlade, chairman, president and chief executive officer, said, “Good cost performance helped offset weaker than expected volumes in the second quarter. Global economic growth continued to be a challenge, with a slower U.S., contraction in Europe, softness in China, and an electronics market much weaker than we expected. Despite these difficult conditions, we were able to deliver bottom-line earnings growth in the first half of the year by focusing on superior execution and cost discipline. With a project backlog totaling over $3 billion and significant leverage to an economic recovery, Air Products remains well positioned for growth over the long-term.”
Key Stats (on next page)…
Revenue decreased 3.06% from $2.56 billion in the previous quarter. EPS increased 5.38% from $1.30 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.49 to a profit $1.5. For the current year, the average estimate has moved up from a profit of $5.74 to a profit of $5.76 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)