APD Earnings Prediction
The chart below shows how APD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, APD sees a +1.74% change in stock price 10 days leading up to the earnings, and a +2.08% change 10 days following the report. On the earnings day itself, the stock moves by -3.03%. This data can give you a slight idea of what to expect for the next quarter's release.
APD Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.19B
-0.12%
6.77%
Gross Margin
33.98%
10.18%
3.53%
Operating Margin
26.63%
15.08%
8.92%
Net Margin
61.64%
186.30%
159.65%
EPS
8.75
181.35%
179.55%
No Data Available
APD Earnings Analysis
Air Products & Chemicals, Inc. Corporation (APD.N) Earnings Conference Call
Positive
Earnings Per Share Increase: 1. Strong Earnings Growth: Air Products reported an adjusted earnings per share of $3.56 for Q4 2024, reflecting a 13% increase compared to the previous year, driven by productivity and pricing actions.
Margin Improvement: 2. Improved Margins: The company achieved a 460 basis point increase in adjusted EBITDA margin and a 350 basis point increase in adjusted operating margin year-over-year, indicating enhanced operational efficiency.
Dividend Increase Consistency: 3. Consistent Dividend Growth: Air Products plans to return approximately $1.6 billion to shareholders in dividends this year, marking a 9% annual growth rate in dividends since 2014, with 42 consecutive years of dividend increases.
EPS Growth Forecast: 4. Long-term EPS Growth Outlook: The company expects adjusted earnings per share for fiscal year 2025 to be between $12.70 and $13, representing a 6% to 9% improvement over the previous year, excluding the LNG business.
Asia Segment Performance: 5. Strong Performance in Asia: The Asia segment saw a 7% volume improvement driven by on-site business, with adjusted EBITDA increasing by 21% and adjusted EBITDA margin improving by almost 500 basis points, showcasing robust demand in the region.
Negative
LNG Sale Earnings Impact: 1. LNG Business Impact: The sale of the LNG process technology and equipment business to Honeywell will result in a 4% headwind for fiscal year 2025, equating to approximately $0.49 per share loss in earnings.
Asia Demand Concerns: 2. Weak Demand in Asia: The company expressed concerns about economic activity in China, leading to a conservative outlook for the first quarter of fiscal year 2025, with no significant growth forecasted due to this uncertainty.
Decline in Merchant Volume: 3. Lower Merchant Volume: The Middle East and India segment reported lower merchant volume, negatively impacting sales and adjusted EBITDA, indicating a decline in demand in that region.
Headcount Growth Concerns: 4. Headcount Increase Concerns: The company has seen a significant headcount increase of about 4,000 people over the years, raising concerns among investors about the sustainability of this growth and its impact on future profitability.
Joint Venture Halted: 5. Project Delays and Cancellations: The proposed $4.5 billion joint venture for green hydrogen in Northern Texas was halted as it did not meet investment criteria, indicating a cautious approach to new projects amidst regulatory challenges.
APD FAQs
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APD Earning Call Sentiment
Air Products and Chemicals, Inc. (APD) Q4 2024 Earnings Call Transcript
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APD.N
-0.8%Positive
The earnings call highlighted strong financial performance with significant EBITDA growth across regions and a robust shareholder return plan. The Q&A revealed cautious optimism, addressing concerns like China's market weakness and environmental challenges. The consistent dividend growth, strategic partnerships, and focus on clean hydrogen projects are positive indicators. Despite some uncertainties, the guidance and project updates suggest a positive outlook, warranting a positive sentiment rating.