NYSE$APD

Air Products & Chemicals Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported a decrease in GAAP EPS and adjusted EPS amidst COVID-19 challenges, while successfully executing growth strategy.

Air Products reported a decrease in GAAP EPS and adjusted EPS due to the negative impacts of COVID-19, but the company continued to execute its growth strategy with new megaprojects and maintained a resilient business model.

  • GAAP EPS of $2.01, down nine percent, including an estimated $0.35-$0.40 negative impact from COVID-19.
  • Adjusted EPS of $2.01, down seven percent, including an estimated $0.35-$0.40 negative impact from COVID-19.
  • Adjusted EBITDA margin of 42.7 percent, up 260 basis points.
  • Announced ground-breaking $7 billion NEOM project and ~$2 billion investment to build a world-scale coal-to-methanol production facility in Indonesia.

Headline financials

Total Revenue

$2.07B

Previous: $2.22B-7.1%
EPS (adj)

$2.01

Previous: $2.17-7.4%
Capital Expenditures

-$2.05B

Previous: -$1.51B-35.7%
Free Cash Flow

-$1.6B

Previous: -$1.02B-56.8%
Net Income

$447M

Previous: $488M-8.5%
Operating Income

$539M

Previous: $570M-5.4%
Gross Profit

$720M

Previous: $758M-5.0%
Cash & Equivalents

$3.92B

Previous: $2.7B+45.4%
Total Assets

$24.8B

Previous: $19.5B+26.9%
Stock-Based Comp

$12.5M

Previous: $9.8M+27.6%

Revenue & EPS history

Air Products · Revenue · Quarterly

$2.07B

Q3 2020-7.1%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Air Products · $1.99B total across 4 segments · Q3 2020

  • Americas
    $850M-11.0%
  • Asia
    $652M-4.0%
  • Europe
    $430M-13.1%
  • Corporate and other
    $56.1M+52.4%

Forward guidance

Significant uncertainty in the global economy remains, and the COVID-19 recovery is showing mixed results around the world. Despite these challenges, the company can and will continue creating value for shareholders over the long term, growing its dividend and investing in world-scale, sustainability-focused projects.

Tailwinds

  • Stable business model
  • Strong financial position
  • Significant growth opportunities
  • Total commitment of our people
  • Continue creating value for shareholders over the long term

Headwinds

  • Significant uncertainty in the global economy remains
  • COVID-19 recovery is showing mixed results around the world
  • Lower merchant demand impacts from COVID-19
  • Unfavorable currency impacts
  • Planned maintenance outages

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 Q3 2020

Historical avgQ3 2020

-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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