Air Products (APD) Tops Q1 EPS by 14c, Offers FY18 EPS Guidance Above Consensus

Air Products (NYSE: APD) reported Q1 EPS of $1.79, $0.14 better than the analyst estimate of $1.65.

Q1 FY18 (all from continuing operations):

• GAAP EPS of $.70, down 39 percent from the prior year; GAAP net income of $156 million
• Adjusted EPS of $1.79*, up 22 percent versus prior year; up 18 percent excluding a $.06 benefit from new U.S. Tax Cuts and Jobs Act
• Adjusted EBITDA margin of 33.2 percent*

Outlook

Ghasemi said, "We continue to be optimistic about the future of Air Products. We cannot predict, and do not have control, over worldwide political or economic developments. But we do have control over the operational and growth performance of Air Products, and we feel confident we can deliver on our goals. We have a strong balance sheet – the best in the industry. We will continue to focus on safety, controlling our costs, and investing in the many strategic growth opportunities we see."

Air Products expects fiscal 2018 adjusted EPS of $7.15 to $7.35 per share, up 13 to 16 percent over prior year, including an estimated $0.20 to $0.25 benefit from the Tax Act. For the fiscal 2018 second quarter, Air Products expects adjusted EPS of $1.65 to $1.70 per share, up 15 to 19 percent over the fiscal 2017 second quarter, including an estimated $0.05 benefit from the Tax Act. This guidance excludes the Lu\'An project and any other significant future acquisitions.

The capital expenditure forecast for fiscal year 2018 is expected to be in the range of $1.2 to $1.4 billion on a GAAP and non-GAAP basis. This guidance excludes Lu'An and any other significant future acquisitions.

The Company adopted accounting guidance in the first quarter which revised the reporting of pension and postretirement expense to reclassify non-service costs from operating costs to non-operating income/expense. There is no impact to reported EPS. See Note 2 to the consolidated financial statements for more details.

GUIDANCE:

Air Products sees FY2018 EPS of $7.15-$7.35, versus the consensus of $7.06.

For earnings history and earnings-related data on Air Products (APD) click here.

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