APD Earnings Cheat Sheet: Revenue Grows By Double-Digits For Fifth Straight Quarter
S&P 500 (NYSE:SPY) component Air Products and Chemicals, Inc. (NYSE:APD) reported its results for the third quarter. Air Products and Chemicals, Inc. 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.
Air Products and Chemicals Earnings Cheat Sheet for the Third Quarter
Results: Net income for the chemicals company rose to $326.5 million ($1.46 per share) vs. $253.2 million ($1.17 per share) in the same quarter a year earlier. This marks a rise of 29% from the year earlier quarter.
Revenue: Rose 14% to $2.6 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: APD fell in line with the mean analyst estimate of $1.46 per share. It beat the average revenue estimate of $2.53 billion.
Quoting Management: John McGlade, chairman, president and chief executive officer, said, “We continued to see strong volume growth across a number of our businesses. Growth in the Asia Merchant business and more broadly in the energy and electronics markets was strong, while both the U.S. and Europe Merchant businesses were slower. This quarter, as expected, we saw a significant number of planned customer maintenance outages in our Tonnage segment. We remain very disappointed by the continued higher operating and maintenance costs in our Merchant segment and are taking the necessary steps to improve performance.”
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 12.2%, with the biggest boost coming in the most recent quarter when revenue rose 15.4% from the year earlier quarter.
The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 20.8% and in the first quarter, the figure rose 6.7%.
Gross margin shrank 0.9 percentage point to 27.6%. The contraction appeared to be driven by increased costs, which rose 16.8% from the year earlier quarter while revenue rose 15.4%.
The company fell in line with estimates last quarter after topping expectations in the previous two quarters. In the second quarter, it topped the mark by 2 cents, and in the first quarter, it was ahead by one cent.
(Source: Xignite Financials)