Airgas Earnings: Profit Rises for Third Straight Quarter, Yet Misses Estimates

S&P 500 (NYSE:SPY) component Airgas Inc. (NYSE:ARG) reported its results for the second quarter. Airgas, through its subsidiaries, distributes industrial, medical, and specialty gases and hardgoods in the United States. It offers a range of gases, including nitrogen and helium, as well as welding and fuel gases.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

Airgas Inc. Earnings Cheat Sheet

Results: Net income for Airgas Inc. rose to $81 million ($1.03 per share) vs. $77.7 million ($1.01 per share) in the same quarter a year earlier. This marks a rise of 4.3% from the year-earlier quarter.

Revenue: Rose 3.6% to $1.23 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Airgas Inc. reported adjusted net income of $1.05 per share. By that measure, the company fell short of mean estimate of $1.15 per share. It fell short of the average revenue estimate of $1.27 billion.

Quoting Management: “Our second quarter earnings reflect the resilience of our business and our 15,000 dedicated associates in a sluggish economic environment,” said Airgas Executive Chairman Peter McCausland. “Though the relative strength of the U.S. metal fabrication and energy sectors overall has softened of late, we continue to win new business in these sectors on the strength of our strategic accounts program, technical support, breadth of our product and service offering, and outstanding customer service. The year-over-year earnings headwinds we faced this quarter from one less selling day, helium supply constraints, and incremental SAP costs reduced our year-over-year earnings growth by $0.07, further highlighting the solid performance in our underlying business.”

Key Stats:

The company has now seen its net income rise for three quarters in a row. In the first quarter, net income rose 21.3% and in the fourth quarter of the last fiscal year, the figure rose 41.5%.

Revenue has risen the past four quarters. Revenue increased 8% to $1.26 billion in the first quarter. The figure rose 12.6% in the fourth quarter of the last fiscal year from the year earlier and climbed 11.5% in the third quarter of the last fiscal year from the year-ago quarter.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of $1.11 versus a mean estimate of net income of $1.07 per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from $1.20 a share to $1.19 over the last sixty days. The average estimate for the fiscal year is $4.80 per share, a rise from $4.73 ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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

Don’t Miss These Additional Hot Stories:

Here’s Why Pharma Stocks are in Play

Tesla Motors: Is It Time to Buy Into the EV Revolution?

Apple Earnings Sneak Peek