Air Products and Chemicals, Inc. (NYSE:APD) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Air Products and Chemicals, Inc. (NYSE:APD) shareholders are probably feeling a little disappointed, since its shares fell 8.2% to US$310 in the week after its latest quarterly results. Results were roughly in line with estimates, with revenues of US$2.9b and statutory earnings per share of US$2.77. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Air Products and Chemicals

Taking into account the latest results, Air Products and Chemicals' 20 analysts currently expect revenues in 2025 to be US$12.3b, approximately in line with the last 12 months. Statutory earnings per share are expected to dive 27% to US$12.62 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$12.3b and earnings per share (EPS) of US$12.72 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$356. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Air Products and Chemicals at US$395 per share, while the most bearish prices it at US$300. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Air Products and Chemicals' revenue growth is expected to slow, with the forecast 2.5% annualised growth rate until the end of 2025 being well below the historical 8.0% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.4% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Air Products and Chemicals.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$356, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Air Products and Chemicals going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for Air Products and Chemicals (1 can't be ignored!) that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.