Yesterday Air Products (NYSE: APD) released earnings that beat estimates on all fronts. As a result, the stock price jumped more than 4%. But is this stock a buy for the long term investor? The answer isn’t so cut and dry as Air Products has faced a lot of headwinds over the past few years and faces more headwinds in the coming years.

But the company has taken some steps to keep growing in the future. The question then is whether or not these moves are enough to continue to grow earnings per share and revenues each year.

Below, we will take an in depth look at Air Products to try to determine if this stock is a good investment or not.

Air Products At A Glance

Air Products is a company that sells gases and chemicals for industrial use and has been in business since 1940.

The income strategy for Air Products is one that is beneficial to investors because they set up long term sales contracts with their customers. This allows for steady revenue each year and this means that the stock price will be less volatile overall.

What Air Products Has Going For It

So what does Air Products have going in its favor? First, I will note again the long term contracts that the company has. In addition to this, they are expanding into emerging markets where they hope to make a solid footprint.

Recently they opened up a new hydrogen plant in India and an oxygen plant in China.

Next, the company has decided to reinvest $8 billion back into the company over the next 3 years. They project that this reinvestment will allow for earnings growth of 10% annually through 2020.

Finally, the company is determined to provide shareholder value through raising its dividend. Air Products has increased their dividend each year for 34 years, which when looked at on an annual basis is an 8% annual growth rate.

When it comes to earnings, Air Products beat earnings per share estimates by $0.08 at $1.76. Revenues also beat estimates, coming in at $2.2 billion, which was an increase of 13%. In the previous quarter, revenues were higher by 11%.