Air Products & Chemicals, Inc.’s shares have surged 10.8% within the last three months. Also, the company outshined its industry’s 3.7% decline within that time frame. Moreover, it topped S&P 500’s nearly 9.8% surge on that time. Let’s check the factors driving the firm.
What’s Backing the Stock?
The upbeat outlook and better-than-anticipated Q3 results contributed to the stocks’ gain. Meanwhile, Air Products’ $2.62 earnings per share for 2022 Q3 beat the analyst’s $2.61 estimate.
Revenues gained approximately 22% Y/Y to $3.189.3 million, surpassing the $3,060 estimate. The firm benefited from surged pricing, higher volumes, and high equality affiliate income during the quarter.
Air Products confirmed about continuing to anticipate FY22 adjusted EPS (earnings per share) at $10.20 – $10.40, suggesting a 14% increase from last year’s adjusted earnings per share.
For FY22 fourth quarter, the form anticipated adjusted earnings per share of $2.68 – $2.88, indicating a 7 – 15% rise from 2021 Q4 EPS.
Air Products benefits from investments in productivity initiatives, acquisitions, new business deals, and high-return projects. It executes growth projects while showing commitment to its gasification approach.
The company boasts the capacity to deploy (2018-2027 fiscal) nearly $35B in high-return projects targeted at ensuring substantial shareholder value. It has already committed about 73% of the mentioned capacity.
Also, the firm is enhancing productivity to ensure an improved cost structure. Moreover, it’s experiencing the positive effects of its productivity developments.
Benefits from cost improvement and additional productivity programs will likely support its margins ahead. Also, Air Products benefited from high pricing, while increased merchant demand drives its volumes.
Moreover, Air Products remains dedicated to maximizing shareholder returns plus leveraging a robust balance sheet & cash flows. The firm, early in 2022, soared its quarterly dividend by 8%, from $1.50/share to $1.62/share.
That reflected the 40th consecutive year of an increased premium. The firm expects to pay over $1.4 billion in shareholder dividends in 2022.
It remains interesting to witness a future performance by the company. Nevertheless, the future seems bright.
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