Air Products Prepares for Q1 Earnings Release Amid Mixed Market Performance
Air Products and Chemicals, Inc. (APD), established in 1940 and based in Allentown, Pennsylvania, stands as a key player in the industrial gases and chemical solutions industry. With a market capitalization of $63.7 billion, Air Products focuses on advancing energy efficiency, sustainability, and operational excellence. Investors anticipate the company will announce its Q1 earnings on Wednesday, February 2.
Profit Expectations and Historical Performance
Preceding the earnings announcement, analysts predict that Air Products will report a profit of $2.84 per share on a diluted basis, a slight increase from last year’s $2.82 per share during the same quarter. Historically, the company successfully surpassed consensus estimates in three of the past four quarters, only falling short once.
Recent Earnings Insights
In its Q4 report, Air Products achieved an EPS of $3.56, exceeding consensus projections by 3.5%. This earnings gain stemmed from higher sales volumes and pricing strategies. However, stagnant revenues were influenced by lower energy cost pass-through and varying regional performance.
Future Outlook
For fiscal year 2025, analysts forecast that Air Products and Chemicals will report an EPS of $13.05, reflecting a 5% increase from the $12.43 in fiscal 2024.
Stock Performance in Context
Over the past 52 weeks, APD stock has lagged behind the S&P 500 Index’s ($SPX) impressive 24.2% gains, with APD shares only up 4.6% during the same timeframe. In contrast, the stock outperformed the Materials Select Sector SPDR Fund’s (XLB) slight decline over that period.
Recent Market Reactions
On November 7, the shares of Air Products and Chemicals closed about 2% higher following the release of its Q4 earnings results. The company reported an adjusted EBITDA of $5 billion, representing a 7% growth, with an adjusted EBITDA margin of 41.7%, an increase of 440 basis points. Looking ahead, APD projects capital expenditures of between $4.5 billion and $5.0 billion for fiscal year 2025.
Analyst Ratings and Price Targets
The consensus opinion among analysts regarding APD stock leans moderately bullish, reflected in an overall “Moderate Buy” rating. Out of 21 analysts covering the company, 12 recommend a “Strong Buy” while nine suggest a “Hold.” The average price target stands at $344.45, indicating a potential upside of 20.8% from current trading levels.
On the date of publication, Rashmi Kumari did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For further details, please review the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein represent those of the author and do not necessarily reflect those of Nasdaq, Inc.
