Air Products (NYSE: APD) reported Q3 EPS of $1.95, $0.11 better than the analyst estimate of $1.84.

Q3 FY18 (all from continuing operations):

• GAAP EPS of $1.95, up 315 percent from the prior year; GAAP net income of $431 million
• Record adjusted EPS of $1.95, up 18* percent versus prior year
• Record adjusted EBITDA margin of 36.3* percent, up 220 basis points versus prior year

Highlights

• Closed on Lu\'An gasification project in China; acquired Shell\'s coal gasification technology/patents
• Brought $350 million steam methane reformer onstream, supplying Covestro (Baytown, Texas), other customers linked to Air Products\' Gulf Coast hydrogen and CO pipeline networks
• Opened world-class India engineering center at Pune and inaugurated industrial gas complex within the Integrated Refinery Expansion Project (IREP) of BPCL\'s Refinery in Kochi

Guidance

• Increased fiscal 2018 adjusted EPS guidance to $7.40 to $7.45 per share, now up 17 to 18 percent over prior year. Fiscal 2018 fourth quarter adjusted EPS guidance of $1.95 to $2.00 per share, up 11 to 14 percent over fiscal 2017 fourth quarter.
• Expected fiscal year 2018 capital spending of $1.8 to $2.0 billion

Commenting on the results, Seifi Ghasemi, chairman, president and chief executive officer, said, "The people of Air Products have delivered another excellent set of safety and financial results, including record adjusted EPS and record adjusted EBITDA margin. We continued to generate significant cash, which supports our robust dividend and future investment opportunities. Meanwhile, we are executing on our overall growth strategy, acquiring the Shell gasification technology and closing on the Lu\'An project this past quarter. This is a team committed to working together, winning together and being best-in-class in everything we do."

Outlook

Ghasemi said, "Over the past four years, we have successfully executed against our Five-Point Plan by focusing on our industrial gas business, decentralizing the company, changing the culture, controlling capital and costs, and aligning the rewards system. As we evolve that Plan to shape our success for the coming years, we will put all our energy into sustaining leading safety and financial performance, investing $15 billion in high-quality industrial gas projects, driving an accountable and inclusive culture, and fulfilling our higher purpose as a company. We remain very optimistic about the future growth of Air Products."

Again increasing guidance for fiscal 2018, Air Products now expects full-year adjusted EPS of $7.40 to $7.45 per share, up 17 to 18 percent over prior year. For the fiscal 2018 fourth quarter, Air Products expects adjusted EPS of $1.95 to $2.00 per share, up 11 to 14 percent over the fiscal 2017 fourth quarter.

The capital expenditure forecast for fiscal year 2018 now is expected to be in the range of $1.8 to $2.0 billion on a GAAP and non-GAAP basis.

GUIDANCE:

Air Products sees FY2018 EPS of $7.40-$7.45, versus the consensus of $7.36.

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