With shares of Air Products and Chemicals (APD -1.58%) closing lower on Tuesday and Wednesday this week, it seemed that investors were wary of the company's reporting of its third-quarter results. This morning, however, those fears were evidently erased as the producer and distributer of industrial gases reported strong third-quarter earnings before the market opened.
As of 10:42 a.m. ET on Thursday, shares of Air Products are up 11.1%.
NYSE: APD
Key Data Points
It's not only the company's recent performance that has investors excited
Coming up just short of analysts' expectations for revenue of $3.04 billion, Air Products booked sales of $2.99 billion for the quarter, but it appears to be the bottom of the income statement that's providing the catalyst for the stock's rise today.
Adjusted earnings per share (EPS) of $3.20 were well above analysts' estimate of $3.03 and management's own forecast of adjusted EPS between $3 and $3.05.
Other encouragement came from management's reaffirmed profitability outlook for 2024. As in the first quarter of the year, the company forecast 2024 adjusted EPS of $12.20 to $12.50. Should it achieve the midpoint of this guidance, it will represent a 7.3% increase over the adjusted $11.51 that the company reported in 2023.
Besides its financials, the company's expanding hydrogen business also provided excitement. Air Products announced its intention to develop a commercial-scale hydrogen refueling network in California, and it's partnering with Mercedes-Benz to convert its distribution fleet to hydrogen-powered vehicles.
It's still a great time to gas up on Air Products stock
Despite the stock's rise today, a wide variety of investors will find Air Products and Chemicals a worthy addition to their portfolios. Whether they want a company that will prosper from the burgeoning hydrogen economy or reliable passive income, it's a solid addition to their holdings.
