Airgas Inc. (ARG), a major provider of safety and industrial-hygiene products for The Boeing Company (BA), inked a three-year extension deal for its safety products supply agreement. The contract will contribute $19 million to revenues in the first year.
To date in September, Airgas has signed three other contracts, the details of which are as follows:
- A three-year extension to its industrial gases and welding products supply agreement with Kiewit Corporation. The contract will contribute $8 million annually to the company’s revenue.
- A five-year deal with British defense and aerospace company BAE Systems to provide bulk and packaged industrial gas, welding hardgoods and related products and personal protective equipment products.
- A deal with the University of Missouri to provide specialty gases, equipment, safety products and services. The deal is expected to add an estimated $1 million to the company’s annual sales.
We expect continued contract wins for the company to help it deliver a solid top-line in the upcoming quarters. Airgas reported a year-over-year revenue growth of 7.2% in the first quarter of 2011.
Airgas expects second quarter earnings to be in the range of 78 cents to 82 cents per share and fiscal full-year 2011 earnings in the range of $3.15 to $3.30.
The company further expects its calendar year 2012 earnings to be at least $4.20 per share.
The Zacks Consensus Estimate for second-quarter 2011 earnings is 81 cents per share. For full years 2011 and 2012, the Zacks Consensus Estimates are, respectively, $3.26 per share and $3.72 per share.
The quantitative Zacks #2 Rank (short-term Buy rating) for the company indicates upward movement of the shares over the near term.
Based in Randor, Pennsylvania, Airgas, through its subsidiaries, distributes industrial, medical and specialty gases, as well as hardgoods in the United States.
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