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AptarGroup (ATR) Q4 Earnings Top Estimates, Revenues Rise Y/Y

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AptarGroup, Inc. (ATR - Free Report) reported fourth-quarter 2023 adjusted earnings per share of $1.21, beating the Zacks Consensus Estimate of $1.12. The bottom line increased 27% from 95 cents (including comparable exchange rates) reported in the year-ago quarter.

On a reported basis, earnings per share were 93 cents compared with the year-ago quarter’s 89 cents.

Total revenues increased 5.3% year over year to $838 million in the reported quarter. The top line surpassed the Zacks Consensus Estimate of $832 million. Core sales, excluding currency and acquisition effects, improved 2% year over year.

AptarGroup, Inc. Price, Consensus and EPS Surprise

 

AptarGroup, Inc. Price, Consensus and EPS Surprise

AptarGroup, Inc. price-consensus-eps-surprise-chart | AptarGroup, Inc. Quote

Operational Update

Cost of sales increased 1.1% year over year to $526 million. Gross profit increased 13.3% year over year to $313 million. The gross margin was 37.2% in the reported quarter compared with the prior-year quarter’s 34.6%.

Selling, research, development and administrative expenses rose 8.1% year over year to $138 million. Adjusted operating income increased 31% year over year to $115 million. The adjusted operating margin was 13.7% in the reported quarter, up from the year-ago quarter’s 11%. Adjusted EBITDA increased 22.3% year over year to $179 million in the fourth quarter.

Segmental Performance

Total revenues in the Pharma segment increased 14.9% year over year to $385 million. The reported figure topped our estimate of $365 million. Adjusted operating income in the quarter fell 3.7% year over year to $103 million. We predicted a quarterly adjusted operating income of $93 million.

Total revenues in the Beauty segment fell 1.7% year over year to $288 million. Our estimate for the segment’s revenues was $313 million. Operating income improved 7.2% year over year to $21 million in the fourth quarter. The reported figure topped our operating income prediction of $19 million.

Total revenues in the Closures segment decreased 1.4% year over year to $166 million. We estimated revenues of $156 million for the quarter. Operating income was $8.3 million in fourth-quarter 2023, up from the $3.7 million reported in the year-ago quarter. Our prediction for the quarter was $10.3 million.

Financial Performance

AptarGroup reported cash and cash equivalents of $224 million as of Dec 31, 2023, up from $142 million as of Dec 31, 2022. The company generated $575 million of cash flow from operations in 2023 compared with $479 million in the last year.

2023 Results

AptarGroup’s adjusted earnings per share improved 24% year over year to $4.78 in 2023 (including comparable exchange rates). The figure beat the Zacks Consensus Estimate of $4.68.

Including one-time items, the company delivered earnings per share of $4.25 in 2023 compared with $3.59 in 2022. Sales rose 5% year over year to $3.49 billion, surpassing the Zacks Consensus Estimate of $3.47 billion. The upside was driven by a favorable product mix, volume growth and pricing.

Outlook

AptarGroup estimates first-quarter 2024 adjusted earnings per share of $1.10-$1.18.

Price Performance

Shares of the company have gained 22.6% in the past year compared with the industry’s rise of 0.3%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank and Stocks to Consider

AptarGroup currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Industrial Products sector are Cadre Holdings, Inc. (CDRE - Free Report) , AZZ Inc. (AZZ - Free Report) , and Applied Industrial Technologies (AIT - Free Report) . CDRE currently sports a Zacks Rank #1 (Strong Buy), and AZZ and AIT carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.11 per share. The consensus estimate for 2024 earnings has moved 1% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 49.2% in the past year.

The Zacks Consensus Estimate for AZZ’s fiscal 2024 earnings per share is pegged at $4.19. The consensus estimate for 2024 earnings has moved north by 2% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 37.6%. AZZ shares have rallied 51.8% in the past year.

Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 26.1% in a year.


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