NYSE$APD

Air Products & Chemicals Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Air Products reported Q1 2024 earnings with increased GAAP EPS and adjusted EPS, driven by higher equity affiliates' income, pricing, and volumes, despite headwinds from geopolitical and economic factors.

Air Products reported a decrease in sales by 6% to $3.0 billion, but increased GAAP EPS by 6% to $2.73 and adjusted EPS by 7% to $2.82. Net income also increased by 6% to $622 million. The company is facing headwinds including a slowdown in manufacturing in Asia, lower helium demand, cost headwinds from a sale of equipment project, and currency devaluation in Argentina.

  • GAAP EPS increased by six percent to $2.73; GAAP net income increased by six percent to $622 million.
  • Adjusted EPS increased by seven percent to $2.82; adjusted EBITDA increased by eight percent to $1.2 billion.
  • Adjusted EBITDA margin increased 510 basis points to 39.2 percent.
  • Full-year adjusted EPS guidance updated to $12.20 to $12.50, up six to nine percent over prior year adjusted EPS.

Headline financials

Total Revenue

$3B

Previous: $3.17B-5.6%
EPS

$2.73

Previous: $2.64+3.4%
Capital Expenditures

-$1.45B

Previous: -$834M-73.3%
Free Cash Flow

-$836M

Previous: -$262M-219.2%
Net Income

$609M

Previous: $572M+6.5%
Operating Income

$667M

Previous: $652M+2.3%
Gross Profit

$930M

Previous: $902M+3.1%
Cash & Equivalents

$1.96B

Previous: $3.13B-37.3%
Total Assets

$34.1B

Previous: $28.3B+20.7%
R&D Expense

$25.7M

No prior period
Stock-Based Comp

$13.8M

Previous: $16.1M-14.3%

Revenue & EPS history

Air Products · Revenue · Quarterly

$3B

Q1 2024-5.6%vs Q1 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Air Products · $2.08B total across 2 segments · Q3 2023

  • Americas
    $1.26B
  • Asia
    $823M

Forward guidance

Air Products expects full-year fiscal 2024 adjusted EPS of $12.20 to $12.50, and second quarter adjusted EPS of $2.60 to $2.75. Capital expenditures are expected to be $5.0 billion to $5.5 billion for the full year.

Tailwinds

  • Full-year adjusted EPS guidance of $12.20 to $12.50, up six to nine percent over prior year adjusted EPS.
  • Second quarter adjusted EPS guidance of $2.60 to $2.75.
  • Expects capital expenditures of $5.0 billion to $5.5 billion for full-year fiscal 2024.
  • Increasing adjusted EPS by seven percent over last year.
  • Successfully implement our ambitious, long-term growth strategy through our core industrial gases business and as a leader in low-carbon intensity hydrogen to generate a cleaner future for the world.

Headwinds

  • Slowdown in manufacturing in Asia, particularly in China
  • Lower helium demand
  • Cost headwinds from a sale of equipment project
  • Currency devaluation in Argentina
  • Reported results were lower than our expectations

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.3%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+0.9%

Avg return

30 days after

45%

33 / 73 earnings

Positive

+12.6%

Q4 2022

Best reaction

-15.5%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-0.1%+0.5%-8.0%
Q1 2026+6.6%+11.9%+7.7%
Q4 2025+8.9%+10.4%+9.7%
Q3 2025-0.8%+0.8%+1.4%
Q2 2025+0.4%-1.3%+2.9%
Q1 2025-1.5%-7.1%-5.0%
Q4 2024+2.0%+1.4%+4.4%
Q3 2024+6.8%+5.6%+5.7%
Q2 2024-0.3%+3.3%+9.4%
Q1 2024-15.5%-14.8%-5.8%
Q4 2023-10.8%-8.9%-10.1%
Q3 2023-5.0%-5.3%-0.4%
Q2 2023-4.9%-5.9%-4.1%
Q1 2023-10.4%-10.4%-7.3%
Q4 2022+12.6%+15.4%+29.9%
Q3 2022+6.9%+5.3%+0.3%
Q2 2022-4.7%-6.8%+1.9%
Q1 2022-9.4%-7.7%-18.7%
Q4 2021+2.4%+3.9%-4.5%
Q3 2021-4.5%-3.8%-7.9%
Q2 2021+3.5%+3.6%+2.3%
Q1 2021-8.5%-8.0%-4.6%
Q4 2020-14.4%-14.0%-13.7%
Q3 2020-1.4%-2.1%-3.1%
Q2 2020+1.1%+4.3%+9.3%
Q1 2020-1.6%-0.0%+7.5%
Q4 2019+6.9%+8.3%+6.0%
Q3 2019+2.5%+3.1%-1.9%
Q2 2019+1.5%+3.5%+4.0%
Q1 2019+2.2%+4.8%+15.1%
Q4 2018+2.3%+1.6%+2.5%
Q3 2018+2.5%+4.4%+5.5%
Q2 2018-0.3%-1.9%-0.3%
Q1 2018-4.2%-3.2%-5.6%
Q4 2017+4.1%+3.1%+4.5%
Q3 2017+4.2%+3.6%+2.3%
Q2 2017-0.8%+1.4%+1.6%
Q1 2017-5.3%-6.8%-5.3%
Q4 2016+0.6%-0.5%+6.4%
Q3 2016+0.3%-0.5%+3.5%
Q2 2016-1.6%
Q1 2016+10.3%
Q4 2015-2.2%
Q3 2015+6.2%
Q2 2015-3.5%
Q1 2015+4.9%
Q4 2014+4.5%
Q3 2014+3.7%
Q2 2014-0.6%
Q1 2014-0.2%
Q4 2013-2.1%
Q3 2013+2.7%
Q2 2013-0.6%
Q1 2013-1.3%
Q4 2012-7.5%
Q3 2012-0.8%
Q2 2012-3.7%
Q1 2012-2.4%
Q4 2011-3.0%
Q3 2011-2.1%
Q2 2011+0.8%
Q1 2011-0.5%
Q4 2010+1.2%
Q3 2010+0.4%
Q2 2010-2.3%
Q1 2009-1.7%
Q1 2010+1.1%
Q2 2009-0.6%
Q4 2007-0.6%
Q4 2009-0.6%
Q3 2008+2.3%
Q4 2008+2.3%
Q3 2009+2.3%

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