Air Products Shares Falling
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What: Shares of Air Products & Chemicals (NYSE: APD) have fallen by as much as 5.6% through midday after the company reported fourth quarter results before the open.
So what: Revenue for the quarter increased to $2.61 billion, or almost 4% above the $2.51 billion reported in the previous year. However, non-GAAP earnings per share declined to $1.42 (before $0.78 per share non-recurring restructuring expenses) from $1.51 last year, just short of the $1.43 per share consensus estimate.
Now what: Although the Q4 earnings are nearly in line with estimates, the share price weakness is being driven by weak guidance from the company.
The company stated, “We are starting our 2013 fiscal year with weak economic momentum worldwide. Our focus will be on taking actions in the areas that we believe can have the greatest impact on improving margins and returns.”
Also, the company’s announcement today that 33 year company veteran CFO Paul Huck will retire on Feb. 28 may be weighing on investors’ outlook for the company. With the recent restructuring, a weak business environment, and impending loss of the CFO, today’s share price decline is a temptation to buy that investors should resist.
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