LEHIGH VALLEY, Pa. - Air Products (NYSE: NYSE:APD) today reported a robust third-quarter fiscal 2024 performance, with adjusted earnings per share (EPS) of $3.20, surpassing the analyst consensus estimate of $3.04. The company's shares surged 7% following the announcement.
Air Products' Chairman, President, and Chief Executive Officer Seifi Ghasemi commented on the quarter's success, attributing the results to solid operating performance in the Americas and Europe, as well as effective pricing and productivity measures. "Our third quarter adjusted EPS of $3.20 exceeded our previous guidance and increased seven percent over the prior year," Ghasemi stated.
Looking ahead, Air Products provided guidance for the fourth quarter of fiscal 2024, with adjusted EPS expected to range between $3.33 and $3.63. This guidance brackets the analyst consensus of $3.53. For the full fiscal year 2024, the company anticipates adjusted EPS to be between $12.20 and $12.50, compared to the consensus estimate of $12.23. The midpoint of the full-year guidance range suggests a potential to outperform market expectations.
The company's positive outlook is further bolstered by its strategic initiatives in the clean hydrogen market, including a 15-year agreement to supply green hydrogen to TotalEnergies (EPA:TTEF)' refineries in Northern Europe. This move aligns with Air Products' sustainability goals and the growing demand for environmentally friendly energy solutions.
Air Products' financial strength is evident in its third-quarter GAAP net income, which climbed 16 percent to $709 million, and a GAAP net income margin increase of 360 basis points to 23.7 percent. Adjusted EBITDA for the quarter reached $1.3 billion, a five percent increase from the prior year, with an adjusted EBITDA margin of 42.4 percent, up 260 basis points.
The company's capital expenditure forecast remains unchanged, with expectations for fiscal year 2024 to range from $5.0 billion to $5.5 billion.
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