Why Air Products & Chemicals Stock Is Plunging Today

Air Products & Chemicals Inc APD reported a fourth-quarter FY23 adjusted EPS increase of 11% year-over-year to $3.15, beating the consensus of $3.12.

Sales for the quarter declined by 11% YoY to $3.19 billion, missing the consensus estimates of $3.35 billion.

The company said 2% higher pricing and 1% favorable currency were more than offset by 14% lower energy cost pass-through, which negatively affected sales but not profits.

Sales by segments: Americas $1.4 billion (-12% Y/Y), Asia $802 million (-7% Y/Y, and Europe $712 million (-18% Y/Y).

Adjusted EBITDA rose 10% Y/Y to $1.26 billion, with margins expanding 740 basis points to 39.5%. 

APD’s operating cash flow for the fiscal totaled $3.205 billion, compared to $3.17 billion in FY22. The company held a cash balance of $1.62 billion at the end of the quarter.

FY24 Outlook: APD expects Adjusted EPS of $12.80-$13.10 vs. consensus of $12.86 and expects capital expenditures of $5 billion-$5.5 billion

1Q24 Outlook: The company sees Adjusted EPS of $2.90-$3.05 vs. consensus Of $2.99.

Price Action: APD shares are trading lower by 10.8% at $259.74 on Tuesday.