Air Products and Chemicals’ revenues
On November 6, Air Products and Chemicals (APD) reported revenues of $2.30 billion for the fourth quarter, which reflects 4.3% growth compared to the fourth quarter of 2017. The company fell marginally short of Wall Street analysts’ estimates of $2.31 billion. Air Products and Chemical’s revenue growth increased 3% due to higher volumes, 1% due to higher pricing, and 1% due to the favorable energy pass through. However, unfavorable foreign currency had a negative impact on Air Products and Chemicals’ revenues by 1%.
Air Products and Chemicals reported an adjusted EPS of $2.00, which beat analysts’ expectation of $1.99. On a year-over-year basis, the adjusted earnings grew 13.6%. The company’s adjusted EPS growth was driven by higher volumes, increased prices, a lower tax rate, and higher equity income. However, higher raw material costs and unfavorable foreign exchange currency had a negative impact on Air Products and Chemicals’ EPS.
Air Products and Chemicals expects the 2019 adjusted EPS to be $8.05 –$8.30, which is an increase of 10% over the previous year. For the first quarter of 2019, Air Products and Chemicals expects an adjusted EPS at $1.85–$1.90.
Stock price reaction
Investors could invest in the iShares U.S. Basic Materials ETF (IYM), which has invested 5.9% of its portfolio in Air Products and Chemicals.
Soon, we’ll release a detailed series with more insights into Air Products and Chemicals’ earnings. Stay tuned!