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Air Products and Chemicals Stock before Its Fiscal 3Q17 Earnings

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Air Products and Chemicals’ fiscal 3Q17 earnings

Air Products and Chemicals (APD) is scheduled to announce its fiscal 3Q17[1. fiscal 3Q17 ended June 30, 2017] earnings on August 1, 2017, before the market opens. The company’s management plans to hold a conference call at 10:00 a.m EDT after its earnings release.

In this series, we’ll analyze APD’s stock performance since its fiscal 2Q17 earnings,[2. fiscal 2Q17 ended March 31, 2017] review the analysts’ revenues and earnings estimates, and the analysts’ latest recommendations.

 

Air Products and Chemicals (APD) announced its fiscal 2Q17 earnings on April 27, 2017. Since then, APD has gained 2.4% and has underperformed the SPDR S&P 500 ETF (SPY), which returned 3.5% for the quarter. Praxair (PX) outperformed APD and SPY with a return of 8.1%.

After its lower-than-expected fiscal 1Q17 earnings, APD’s stock price fell drastically from $149.00 to as low as $134.30. Further, the failed bid to take over Yingde Gases Group, citing that it is not in the best interest of its shareholders, also acted as a setback for the stock.

However, after APD posted better-than-expected fiscal 2Q17 earnings, the stock recovered and again traded in the range of $143.00 to $145.00. Its good fiscal 2Q17 earnings were primarily driven by higher volumes due to new business deals that APD won.

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Moving averages and relative strength index

APD’s recovery after its fiscal 2Q17 earnings helped the stock trade 2.4% above its 100-day moving average price of $141.52, indicating the resumption of the stock’s upward trend. APD’s relative strength index (or RSI) of 52 indicates that the stock is neither overbought nor oversold.

Investors can indirectly hold APD by investing in the iShares US Basic Materials ETF (IYM), which invests 5.0% of its portfolio in APD. IYM also invests in DuPont (DD) and Monsanto (MON), which had weights of 11.7% and ~8.3%, respectively, on July 24, 2017.

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