Why Shares of Air Products Are Soaring Today

With shares of Air Products and Chemicals (NYSE: APD) closing lower on Tuesday and Wednesday this week, it seemed that investors were wary of the company's reporting of its third-quarter results. This morning, however, those fears were evidently erased as the producer and distributer of industrial gases reported strong third-quarter earnings before the market opened.

As of 10:42 a.m. ET on Thursday, shares of Air Products are up 11.1%.

It's not only the company's recent performance that has investors excited

Coming up just short of analysts' expectations for revenue of $3.04 billion, Air Products booked sales of $2.99 billion for the quarter, but it appears to be the bottom of the income statement that's providing the catalyst for the stock's rise today.

Adjusted earnings per share (EPS) of $3.20 were well above analysts' estimate of $3.03 and management's own forecast of adjusted EPS between $3 and $3.05.

Other encouragement came from management's reaffirmed profitability outlook for 2024. As in the first quarter of the year, the company forecast 2024 adjusted EPS of $12.20 to $12.50. Should it achieve the midpoint of this guidance, it will represent a 7.3% increase over the adjusted $11.51 that the company reported in 2023.

Besides its financials, the company's expanding hydrogen business also provided excitement. Air Products announced its intention to develop a commercial-scale hydrogen refueling network in California, and it's partnering with Mercedes-Benz to convert its distribution fleet to hydrogen-powered vehicles.

It's still a great time to gas up on Air Products stock

Despite the stock's rise today, a wide variety of investors will find Air Products and Chemicals a worthy addition to their portfolios. Whether they want a company that will prosper from the burgeoning hydrogen economy or reliable passive income , it's a solid addition to their holdings.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .