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Allentown, Pennsylvania-based Air Products and Chemicals, Inc. (APD) provides atmospheric gases, process and specialty gases, equipment, and related services. Valued at $59.47 billion by market cap, the company develops, engineers, builds, owns, and operates some of the world's largest industrial gas projects, including gasification projects for producing high-value power, fuels, and chemicals. The leading industrial gas supplier is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Thursday, Aug. 1.
Ahead of the event, analysts expect APD to report a profit of $3.04 per share on a diluted basis, up 2% from $2.98 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on another occasion.
For the full year, analysts expect APD to report EPS of $12.28, up 6.7% from $11.51 in fiscal 2023.
APD stock has underperformed the S&P 500’s ($SPX) 17.7% gains on a YTD basis, with shares down 1.7% during this period. Similarly, it underperformed the S&P 500 Materials Sector SPDR’s (XLB) 7.6% gains over the same time frame.
On Jun. 7, APD shares closed up more than 4% after TotalEnergies SE signed a 15-year contract to buy green hydrogen from the company. APD will supply 70,000 tons of green hydrogen annually in Europe in 2030.
On Apr. 30, APD reported its Q2 results. Its adjusted EPS came in at $2.85, rising 4% year over year. The company’s adjusted EBITDA increased 4.1% year over year to $1.20 billion. For Q3, APD forecast its adjusted EPS to be between $3 and $3.05. Meanwhile, it maintained its full-year adjusted EPS of between $12.20 and $12.50, up 6% to 9% over the year-ago quarter. APD shares closed down marginally on the day the results were released but have been on an uptrend since then.
Analysts’ consensus opinion on APD stock is bullish, with a “Moderate Buy” rating overall. Out of 19 analysts covering the stock, 10 advise a “Strong Buy” rating, eight give a “Hold” rating, and one recommends a “Strong Sell.” The average analyst price target for APD is $281.59, indicating a potential upside of 5.3% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
