Air Products Earnings: Full-Year Outlook Maintained but Earnings Will Be Back-End-Loaded

We’re maintaining our $333 fair value estimate for Air Products after the wide-moat industrial gas firm reported solid fiscal first-quarter results, as its adjusted EPS of $2.86 came in a penny above management’s guidance range of $2.75 to $2.85. After a roughly 50% run over the last year, we now see the stock as fairly valued, as we believe that the successful activist campaign has largely dispelled the market’s concerns about Air Products’ hydrogen backlog.