Airgas Q4 Profit Rises, Results Miss Estimates; Hikes Dividend 15% - Quick Facts

(RTTNews) - Industrial gases supplier Airgas Inc. (ARG) said that its fourth-quarter net earnings rose to $88.36 million from $86.14 million in the same quarter last year. Fourth quarter earnings per share were $1.17, up 4% over prior year earnings per share of $1.13.

Excluding a $0.02 state income tax benefit, adjusted earnings per share were $1.15, up 1% over prior year's $1.14. Analysts polled by Thomson Reuters expected the company to report earnings of $1.20 per share. Analysts' estimates typically exclude special items.

Results included SAP-related benefits, net of implementation costs and depreciation expense, of $0.16 per share in the latest-quarter compared to $0.04 of net benefits in the prior year quarter.

Fourth quarter sales were $1.27 billion, flat compared to prior year. Organic sales in the quarter were down 1% compared to prior year, with gas and rent down 1% and hardgoods down 2%. Wall Street expected revenues of $1.29 billion.

Distribution segment organic sales in the quarter were up 1% compared to prior year, with gas and rent up 2% and hardgoods down 2%. Acquisitions contributed sales growth of 1% in the quarter on a consolidated basis and in the Distribution segment.

Airgas announced that its Board has increased the quarterly cash dividend on the Company's common stock by 15%, from $0.48 per share to $0.55 per share. The dividend will be payable on June 30, 2014 to shareholders of record as of June 13, 2014.

For the first quarter of fiscal year 2015, the Company expects earnings per share in the range of $1.15 to $1.20, reflecting an increase of 1% to 5% over prior year earnings per diluted share of $1.14. First quarter guidance assumes a year-over-year organic sales growth rate in the low single digits. Analysts expect the company to report earnings of $1.31 per share and revenues of $1.35 billion for the first-quarter.

For the full fiscal year 2015, the Company expects earnings per diluted share in the range of $5.00 to $5.20, reflecting an increase of 7% to 11% over prior year earnings per diluted share and an increase of 6% to 10% over prior year adjusted earnings per share. Full year guidance includes a $0.11 to $0.16 per share negative year-over-year impact from variable compensation reset following a below-budget year.

The Company currently expects the contribution from its refrigerants business to year-over-year earnings per diluted share growth in fiscal 2015 to be slightly favorable.

Street currently is looking for fiscal year 2015 earnings of $5.42 per share on annual revenues of $5.38 billion.