BofA sees bullish sentiment on APD with beat and raise expected

Investing.com -- Bank of America reports that investor sentiment has turned bullish on Air Products and Chemicals after the company formally canceled the Darrow project. The firm said clients expect the company to beat estimates for its fiscal third quarter and raise guidance for fiscal 2026.

Investors anticipate strength from cost reductions, pricing improvements, and helium price increases, according to the note. Following strong beats in the first and second fiscal quarters, discussions point to a new earnings per share range of $13.15 to $13.35.

For Celanese, BofA said clients were encouraged by pre-quarter end calls and expect the company to meet second quarter expectations. The general view is that guidance for second half 2026 earnings of approximately $3 per share will be reiterated.

Dow is expected to post second quarter EBITDA above its $2.2 billion guidance despite soft June polyethylene settlements. Clients expect third quarter EBITDA guidance between $1.7 billion and $2 billion, with actual performance likely in the $1.7 billion to $1.8 billion range.

For PPG Industries, expectations are set for a second quarter earnings beat of more than $0.04 per share. The 2026 guidance is expected to be reiterated with a possible increase to the low end of the range.

Bank of America said most clients expect RPM International to beat fiscal fourth quarter earnings estimates. The company will also issue fiscal first quarter and full year fiscal 2027 targets, with clients concerned about first quarter consensus.

Investors expect Ecolab to beat second quarter estimates and raise full year earnings guidance. The buyside believes the company's new full year update issued on July 2 appears conservative.

For Mosaic, results are expected to be soft for the second quarter with some clients suggesting EBITDA around $350 million. Concerns center on the outlook with fixed cost absorption and volume pressures as the company has idled additional capacity.

Linde is expected to raise full year guidance to include 10% earnings growth. The new full year guide is expected to move to 8% to 10% earnings per share growth, implying a range of $17.75 to $18.10 per share.

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