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AptarGroup (ATR) Earnings Beat Estimates in Q2, Increase Y/Y
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AptarGroup, Inc. (ATR - Free Report) reported second-quarter 2024 adjusted earnings per share of $1.37, beating the Zacks Consensus Estimate of $1.36. The bottom line increased 12% year over year from $1.22 (including comparable exchange rates).
On a reported basis, earnings per share were $1.34 compared with the year-ago quarter’s $1.24.
Total revenues increased 1.6% year over year to $910 million in the reported quarter. The reported figure missed the Zacks Consensus Estimate of $923 million. Core sales, excluding currency and acquisition effects, improved 3% year over year. The upside was driven by the solid performance in the Pharma segment. We expected core sales to be up 2.6% in the quarter.
AptarGroup, Inc. Price, Consensus and EPS Surprise
Cost of sales fell 1.1% year over year to $567 million. Gross profit improved 6.3% year over year to $343 million. The gross margin expanded to 37.6% in the reported quarter compared with the prior-year quarter’s 36%.
Selling, research, development and administrative expenses increased 5.76% year over year to $149 million. Adjusted operating income increased 7.54% year over year to $128 million. The adjusted operating margin was 14% in the reported quarter, up from the year-ago quarter’s 13.3%. Adjusted EBITDA rose 6.5% year over year to $193 million in the second quarter.
Segmental Performances
Total revenues in the Pharma segment increased 6.1% year over year to $415 million. The reported figure surpassed our estimate of $410 million. Adjusted operating income in the quarter rose 13.5% year over year to $112 million. We predicted a quarterly adjusted operating income of $108 million.
Total revenues in the Beauty segment decreased 2.5% year over year to $321 322 million. Our estimate for the segment’s revenues was $335 million. Operating income improved 8.62% year over year to $24 million in the second quarter. The reported figure surpassed our estimate of operating income of $23 million.
Total revenues in the Closures segment decreased 0.9% year over year to $174 million. We estimated revenues to be $180 million in the quarter. Operating income was $13 million in second-quarter 2023, reflecting a fall of 12.3% from the year-ago quarter. Our prediction for the quarter was $15 million.
Financial Performance
ATR reported cash and cash equivalents of $221 million as of Jun 30, 2024, down from $224 million as of Dec 31, 2023. The company generated $144 million of cash flow from operations in the second quarter of 2023 2024 compared with $84 million in the prior-year quarter.
Outlook
AptarGroup estimates third-quarter 2024 adjusted earnings per share of $1.38-$1.46.
Price Performance
ATR shares have gained 19.5% in the past year compared with the industry’s growth of 9.4%.
Greif, Inc. (GEF - Free Report) reported adjusted earnings per share of 82 cents in second-quarter fiscal 2024 (ended Apr 30, 2024), which surpassed the Zacks Consensus Estimate of 77 cents. The bottom line fell 54% year over year. Results were impacted by elevated raw material, transportation and manufacturing costs, and higher SG&A expenses, reflecting increased compensation expenses and costs incurred for strategic investments.
Sales rose 4.1% year over year to $1.37 billion. The top line surpassed the Zacks Consensus Estimate of $1.31 billion.
Packaging Corporation of America (PKG - Free Report) reported adjusted earnings per share of $2.20 in the second quarter of 2024, beating the Zacks Consensus Estimate of $2.12. The reported figure was higher than the company’s guidance of $2.07 in the quarter under review. However, the bottom line decreased 5% year over year.
Sales in the second quarter grew 6.3% year over year to $2.08 billion. The top line beat the Zacks Consensus Estimate of $2.03 billion.
Packaging Stock Awaiting Results
Sealed Air Corporation (SEE - Free Report) , scheduled to release second-quarter 2024 results on Aug 8, has a trailing four-quarter average surprise of 32.3%. The Zacks Consensus Estimate for SEE’s second-quarter 2024 earnings is pegged at 64 cents per share, suggesting a year-over-year fall of 20%.
The Zacks Consensus Estimate for the company’s top line is pegged at $1.31 billion, indicating a decrease of 5.3% from the prior-year reported figure.
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AptarGroup (ATR) Earnings Beat Estimates in Q2, Increase Y/Y
AptarGroup, Inc. (ATR - Free Report) reported second-quarter 2024 adjusted earnings per share of $1.37, beating the Zacks Consensus Estimate of $1.36. The bottom line increased 12% year over year from $1.22 (including comparable exchange rates).
On a reported basis, earnings per share were $1.34 compared with the year-ago quarter’s $1.24.
Total revenues increased 1.6% year over year to $910 million in the reported quarter. The reported figure missed the Zacks Consensus Estimate of $923 million. Core sales, excluding currency and acquisition effects, improved 3% year over year. The upside was driven by the solid performance in the Pharma segment. We expected core sales to be up 2.6% in the quarter.
AptarGroup, Inc. Price, Consensus and EPS Surprise
AptarGroup, Inc. price-consensus-eps-surprise-chart | AptarGroup, Inc. Quote
Operational Update
Cost of sales fell 1.1% year over year to $567 million. Gross profit improved 6.3% year over year to $343 million. The gross margin expanded to 37.6% in the reported quarter compared with the prior-year quarter’s 36%.
Selling, research, development and administrative expenses increased 5.76% year over year to $149 million. Adjusted operating income increased 7.54% year over year to $128 million. The adjusted operating margin was 14% in the reported quarter, up from the year-ago quarter’s 13.3%. Adjusted EBITDA rose 6.5% year over year to $193 million in the second quarter.
Segmental Performances
Total revenues in the Pharma segment increased 6.1% year over year to $415 million. The reported figure surpassed our estimate of $410 million. Adjusted operating income in the quarter rose 13.5% year over year to $112 million. We predicted a quarterly adjusted operating income of $108 million.
Total revenues in the Beauty segment decreased 2.5% year over year to $321 322 million. Our estimate for the segment’s revenues was $335 million. Operating income improved 8.62% year over year to $24 million in the second quarter. The reported figure surpassed our estimate of operating income of $23 million.
Total revenues in the Closures segment decreased 0.9% year over year to $174 million. We estimated revenues to be $180 million in the quarter. Operating income was $13 million in second-quarter 2023, reflecting a fall of 12.3% from the year-ago quarter. Our prediction for the quarter was $15 million.
Financial Performance
ATR reported cash and cash equivalents of $221 million as of Jun 30, 2024, down from $224 million as of Dec 31, 2023. The company generated $144 million of cash flow from operations in the second quarter of 2023 2024 compared with $84 million in the prior-year quarter.
Outlook
AptarGroup estimates third-quarter 2024 adjusted earnings per share of $1.38-$1.46.
Price Performance
ATR shares have gained 19.5% in the past year compared with the industry’s growth of 9.4%.
Image Source: Zacks Investment Research
Zacks Rank
AptarGroup currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Q2 Performance
Greif, Inc. (GEF - Free Report) reported adjusted earnings per share of 82 cents in second-quarter fiscal 2024 (ended Apr 30, 2024), which surpassed the Zacks Consensus Estimate of 77 cents. The bottom line fell 54% year over year. Results were impacted by elevated raw material, transportation and manufacturing costs, and higher SG&A expenses, reflecting increased compensation expenses and costs incurred for strategic investments.
Sales rose 4.1% year over year to $1.37 billion. The top line surpassed the Zacks Consensus Estimate of $1.31 billion.
Packaging Corporation of America (PKG - Free Report) reported adjusted earnings per share of $2.20 in the second quarter of 2024, beating the Zacks Consensus Estimate of $2.12. The reported figure was higher than the company’s guidance of $2.07 in the quarter under review. However, the bottom line decreased 5% year over year.
Sales in the second quarter grew 6.3% year over year to $2.08 billion. The top line beat the Zacks Consensus Estimate of $2.03 billion.
Packaging Stock Awaiting Results
Sealed Air Corporation (SEE - Free Report) , scheduled to release second-quarter 2024 results on Aug 8, has a trailing four-quarter average surprise of 32.3%. The Zacks Consensus Estimate for SEE’s second-quarter 2024 earnings is pegged at 64 cents per share, suggesting a year-over-year fall of 20%.
The Zacks Consensus Estimate for the company’s top line is pegged at $1.31 billion, indicating a decrease of 5.3% from the prior-year reported figure.