Air Products Sees Q2 Adj. EPS Below Market, Cuts FY24 Outlook; Stock Dips In Pre-market

(RTTNews) - Air Products And Chemicals Inc. (APD), while reporting higher first-quarter earnings, but below market estimates, on Monday issued second-quarter outlook, and trimmed fiscal 2024 forecast, both below the Street view. In pre-market activity on the NYSE, APD shares were losing around 9.1 percent to trade at $234.69.

For the second quarter of fiscal 2024, Air Products projects adjusted earnings per share of $2.60 to $2.75.

Analysts on average expect the company to report earnings of $3.16 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Further, for fiscal 2024, the company now expects adjusted earnings per share of $12.20 to $12.50, up six to nine percent over prior year. The company previously expected $12.80 to $13.10, a growth of 13 percent at the midpoint over prior year.

The Street is looking for earnings of $12.97 per share for the year.

Air Products continues to expect capital expenditures of $5.0 billion to $5.5 billion for fiscal 2024.

In its first quarter, the company's earnings totaled $609.3 million, or $2.73 per share. This compares with $572.2 million, or $2.57 per share, in last year's first quarter.

Adjusted earnings were $628.0 million or $2.82 per share for the period. Analysts had expected the company to earn $3.00 per share.

The company's revenue for the quarter fell 5.4% to $3.00 billion from $3.17 billion last year.

According to the company, the weak results reflected "a slowdown in manufacturing in Asia, particularly in China; lower helium demand; cost headwinds from a sale of equipment project; and currency devaluation in Argentina."

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