Air Products and Chemicals: A Fundamental Analysis of their Latest Earnings Report
On May 26, 2023, Air Products and Chemicals (NYSE:APD) released its latest earnings report for the quarter ending May 9th. The basic materials company reported $2.74 EPS for this quarter, surpassing the consensus estimate of $2.64 by $0.10. In this article, we will provide a detailed analysis of the report to determine what factors are driving the company’s current performance.
Air Products and Chemicals managed to generate $3.20 billion revenue during Q1 of 2023 which is more than their consensus estimate of $3.08 billion. This indicates that the company has been successful in managing its operations more efficiently and diversifying its revenue streams.
Net Margin & Return on Equity
The company had a net margin of 16.58% which is an increase compared to the same period last year which suggests that Air Products and Chemicals was able to cut costs while increasing efficiency to boost profits in Q1 of 2023. Moreover, the firm saw a return on equity of 16.96% which is an impressive feat for any business regardless of industry.
Dividend Payout Ratio
Investors will also be curious about Air products and Chemicals’ dividend payouts given how much businesses have had to adapt during recent years as shareholder priorities evolve . Currently, APD holds dividend costs at roughly around seventy-two percent after paying out quarterly dividends totaling $1.75 per share on August 14th with stockholders getting paid on July third having recorded shares no later than June 30th .
Immediately following their earning release announcement, NYSE APD stock opened at $272.12 on Friday, May 26th with a hefty market capitalization value at fifty-seven billion dollars , a P/E ratio standing at >27x and a P/E/G ratio hovering over 2.50x. The company carries equity ratios of 0.61 in its debt-to-equity lineup – further demonstrating the business’s reliance on strong revenue streams.
Overall, it seems that Air Products and Chemicals had a relatively successful year-end for Q1 in terms of growth, regulatory compliance, and as evident by the dividend payouts retaining good will with investors. Conseuqently, before investing , one would do well to assess overall market trends , corporate governance trends and other aspects of their portfolio to determine how APD fits into the grander scheme of things before making any long-term commitments .
Air Products and Chemicals (NYSE:APD) Q4 2023 Earnings Estimate and Analyst Comments
Air Products and Chemicals, Inc. (NYSE:APD) has been in the news recently for its Q4 2023 earnings per share (EPS) estimates. According to the latest research note issued by Zacks Research, analysts predict that the basic materials company will earn $3.10 per share for the quarter, lower than their previous forecast of $3.18. However, the consensus estimate for Air Products and Chemicals’ current full-year earnings remains at $11.39 per share.
The research also includes estimates for Air Products and Chemicals’ future earnings, with Q1 2024 earnings predicted at $3.08 EPS, Q2 2024 earnings at $2.71 EPS, Q3 2024 earnings at $3.08 EPS, Q4 2024 earnings at $3.24 EPS, FY2024 earnings at $12.11 EPS and Q2 2025 earnings at $3.29 EPS.
This recent news on Air Products and Chemicals has led to a number of comments from other research analysts as well. Citigroup lowered their target price on Air Products and Chemicals from $339.00 to $329.00 and set a “neutral” rating for the company in February this year while Wells Fargo & Company raised their price target on Air Products and Chemicals from $280 to $307 back then too.
Meanwhile, StockNews.com began coverage on Air Products and Chemicals in a research report on May 18th issuing a “hold” rating for the company while Evercore ISI raised its price target on it from $295 to $305 in March this year.
According to Bloomberg.com’s data, nine equities research analysts have given a hold rating while eight others have offered a buy rating with regards to APD’s approximate consensus rating of “Hold” with an average consensus price target hovering around %312 per share.
While there are speculations on the Air Products and Chemicals’ future earnings, several institutional investors have purchased or grown their stake in it. For instance, Norges Bank purchased a new position in shares of Air Products and Chemicals during Q4 2023 valued at $962,356,000 while Moneta Group Investment Advisors LLC grew its stake in APD by 111,211.3% in the same quarter with Morgan Stanley growing its own by 26.0% during the same time frame.
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