Air Products Shares Surge 7% on Strong Guidance and Q3 Earnings Beat

LEHIGH VALLEY, Pa. – Air Products recently announced a strong performance for the third quarter of fiscal 2024, reporting adjusted earnings per share (EPS) of $3.20, exceeding the consensus estimate of $3.04. In response to the news, the company’s shares rose by 7%.

Chairman, President, and Chief Executive Officer Seifi Ghasemi praised the successful quarter, highlighting robust operating performance in both the Americas and Europe, alongside effective pricing strategies and productivity improvements. "Our third quarter adjusted EPS of $3.20 surpassed our previous guidance and marked a seven percent increase compared to the previous year," Ghasemi remarked.

Looking forward, Air Products provided an optimistic outlook for the fourth quarter of fiscal 2024, estimating adjusted EPS to fall between $3.33 and $3.63. This guidance closely aligns with the analyst consensus of $3.53. Additionally, for the entire fiscal year 2024, the company forecasts adjusted EPS in the range of $12.20 to $12.50, which is slightly above the consensus estimate of $12.23. The midpoint of this guidance suggests the company could surpass market expectations.

The positive outlook is further reinforced by Air Products’ strategic initiatives in the clean hydrogen sector, including a 15-year agreement to supply green hydrogen to TotalEnergies’ refineries in Northern Europe. This initiative aligns with the company’s sustainability goals and addresses the rising demand for environmentally friendly energy solutions.

Air Products’ financial performance is demonstrated by a 16 percent increase in third-quarter GAAP net income, reaching $709 million, and a 360 basis points rise in GAAP net income margin, now at 23.7 percent. The adjusted EBITDA for the quarter also saw a five percent increase from the previous year, totaling $1.3 billion, with an adjusted EBITDA margin of 42.4 percent, up 260 basis points.

The company’s capital expenditure forecast remains stable, with expectations for fiscal year 2024 ranging between $5.0 billion and $5.5 billion.