With shares of AirProducts and Chemicals(NYSE: APD) closing lower on Tuesday and Wednesday this week, it seemed that investors were wary of the company's reporting of its third-quarter results. This morning, however, those fears were evidently erased as the producer and distributer of industrial gases reported strong third-quarter earnings before the market opened.
As of 10:42 a.m. ET on Thursday, shares of Air Products are up 11.1%.
It's not only the company's recent performance that has investors excited
Coming up just short of analysts' expectations for revenue of $3.04 billion, Air Products booked sales of $2.99 billion for the quarter, but it appears to be the bottom of the income statement that's providing the catalyst for the stock's rise today.
Adjusted earnings per share (EPS) of $3.20 were well above analysts' estimate of $3.03 and management's own forecast of adjusted EPS between $3 and $3.05.
Other encouragement came from management's reaffirmed profitability outlook for 2024. As in the first quarter of the year, the company forecast 2024 adjusted EPS of $12.20 to $12.50. Should it achieve the midpoint of this guidance, it will represent a 7.3% increase over the adjusted $11.51 that the company reported in 2023.
Besides its financials, the company's expanding hydrogen business also provided excitement. Air Products announced its intention to develop a commercial-scale hydrogen refueling network in California, and it's partnering with Mercedes-Benz to convert its distribution fleet to hydrogen-powered vehicles.
It's still a great time to gas up on Air Products stock
Despite the stock's rise today, a wide variety of investors will find Air Products and Chemicals a worthy addition to their portfolios. Whether they want a company that will prosper from the burgeoning hydrogen economy or reliable passive income, it's a solid addition to their holdings.
Should you invest $1,000 in Air Products And Chemicals right now?
Before you buy stock in Air Products And Chemicals, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Air Products And Chemicals wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $717,050!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of July 29, 2024
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
