Airgas Earnings: Here’s Why Shares are Up Now

Airgas Inc. (NYSE:ARG) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.6%.

Airgas Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 0.88% to $1.14 in the quarter versus EPS of $1.13 in the year-earlier quarter.

Revenue: Rose 1.8% to $1.28 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Airgas Inc. reported adjusted EPS income of $1.14 per share. By that measure, the company missed the mean analyst estimate of $1.15. It beat the average revenue estimate of $1.27 billion.

Quoting Management: “The EPA’s unexpected ruling in late March to allow for an increase in the production of R-22 this year challenged our refrigerants business to a greater extent than we had estimated, with the unusually cool spring weather across much of the country exacerbating its impact on our results. Both volumes and pricing of R-22 were pressured following the EPA ruling, and the year-over-year negative impact on our earnings this quarter was $0.07 per diluted share compared to the estimated year-over-year negative impact of $0.04 per diluted share we had assumed in our guidance,” said Airgas President and Chief Executive Officer Michael L. Molinini. “Absent the incremental refrigerants impact, our results for the quarter were in-line with the mid-point of our earnings per share guidance range, with Distribution segment organic sales up 1% in what continues to be a very challenging economic environment.”

Key Stats (on next page)…

Revenue increased 1.34% from $1.26 billion in the previous quarter. EPS were the same at $1.14 as the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.28 to a profit $1.20. For the current year, the average estimate has moved down from a profit of $5.35 to a profit of $5.06 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)