Industrial gases company Air Products and Chemicals, Inc. (APD) caters to the energy, environment, and emerging markets. It provides industrial gases, associated equipment, and expertise to customers across a range of industries including, refining, chemicals, metals, food & beverage, and manufacturing.
In its recent Q4 showing, APD’s revenue increased 22.5% year-over-year to $2.84 billion, beating estimates by $171 million. Earnings per share at $2.51 came in ahead of estimates by $0.02. The robust performance was attributable to higher volumes, energy cost pass-through, coupled with favorable pricing and currency movement.
APD’s upcoming earnings for the first quarter are expected on February 4. Consensus estimates point to earnings per share of $2.52 for this period. With these developments in mind, let’ us take a look at the changes in APD’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, Air Products’ top risk category is Macro & Political, contributing 29% (compared to a sector average of 12%) to the total 17 risks identified. In its recent annual report, the company has removed one key risk factor from the Legal & Regulatory risk category.
APD had noted that its spin-off of Versum could lead to significant tax liabilities for APD as well as its shareholders, if the transaction is determined to be taxable for U.S. federal income tax purposes.
Hedge Fund Activity
According to TipRanks data, the Wall Street’s top hedge funds have decreased holdings in Air Products by 36.1 thousand shares in the last quarter, indicating a very negative hedge fund confidence signal in the stock based on activities of 12 hedge funds in the recent quarter.
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