Shares of Air Products and Chemicals Inc. (APD) - Get Air Products and Chemicals, Inc. Report were falling sharply Monday after the atmospheric gas and equipment servicer reported third-quarter earnings results below expectations.
The Allentown, Pa., company reported third-quarter earnings of $2.31 per share on revenue of $2.6 billion. Analysts were expecting earnings of $2.36 per share on revenue of $2.5 billion.
"The stability of our business and the dedication of our people have been on full display, as we continue to deliver strong financial results despite the challenges of the pandemic," CEO Seifi Ghasemi said.
Shares of Air Products and Chemicals were down 5.2% to $275.75 at closing on Monday.
For the fourth quarter, the company expects EPS between $2.44 and $2.54 per share, an 11% to 16% year-over-year increase. Analysts are expecting earnings of $2.50 per share.
For the full year, the company expects earnings to range between $8.95 and $9.05 per share, an approximate 8% increase over 2020. Analysts are expecting full-year earnings of $9.05 per share, according to FactSet.
The company benefitted from the COVID-19 recovery in its industrial gases-Americas business segment with revenue rising 25% year-over-year to $1.063 billion. The company also benefitted from higher medical oxygen sales in South America.
Industrial gases-Asia sales rose 15% year-over-year to $752 million
The company's operating margin fell 230 basis points in the quarter to 26.9% due to higher energy cost pass through being the largest culprit for the decline in profitability.