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AptarGroup Q3 Earnings Beat Estimates, Revenues Increase Y/Y

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AptarGroup, Inc. (ATR - Free Report) reported third-quarter 2024 adjusted earnings per share (EPS) of $1.49, beating the Zacks Consensus Estimate of $1.43. The bottom line increased 6% year over year from $1.40 (including comparable exchange rates).

On a reported basis, EPS was $1.48 compared with the year-ago quarter’s $1.26.

AptarGroup, Inc. Price, Consensus and EPS Surprise

 

AptarGroup, Inc. Price, Consensus and EPS Surprise

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

Total revenues increased 1.8% year over year to $909 million in the reported quarter. However, the reported figure missed the Zacks Consensus Estimate of $932 million. Core sales, excluding currency and acquisition effects, improved 2% year over year due to strong performances in the pharma and closures segments. We expected core sales to rise 4.7% in the quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

ATR’s Margins Rise Y/Y in Q3

Cost of sales fell 1.4% year over year to $558.5 million. Gross profit improved 7.5% year over year to $351 million. The gross margin expanded to 38.6% in the reported quarter from the prior-year quarter’s 36.5%.

Selling, research, development and administrative expenses increased 2.5% year over year to $142 million. Adjusted operating income increased 8.2% year over year to $141 million. The adjusted operating margin was 15.5% in the reported quarter, up from the year-ago quarter’s 14.6%. Adjusted EBITDA rose 7.8% year over year to $208 million in the third quarter.

AptarGroup’s Q3 Segmental Performances

Total revenues in the Pharma segment increased 8.1% year over year to $421 million. The reported figure missed our estimate of $428 million. Adjusted operating income in the quarter rose 11.6% year over year to $121 million. We predicted a quarterly adjusted operating income of $117 million.

Total revenues in the Beauty segment decreased 6.5% year over year to $303 million. Our estimation for the segment’s revenues was $328 million. Adjusted operating income fell 2.4% year over year to $19.8 million in the third quarter. The reported figure missed our operating income prediction of $24 million.

Total revenues in the Closures segment rose 3.3% year over year to $186 million. We estimated revenues of $185 million for the quarter. Adjusted operating income was $17 million in third-quarter 2024, reflecting growth of 15.8% from the year-ago quarter. Our prediction for the quarter was $15 million.

ATR’s Q3 Financial Performance

AptarGroup reported cash and cash equivalents of $325.5 million as of Sept. 30, 2024, up from $223.6 million as of Dec. 31, 2023. The company generated $229 million of cash flow from operations in the third quarter of 2024 compared with $173 million in the prior-year quarter.

AptarGroup’s Q4 & 2024 Outlook

The company expects fourth-quarter 2024 adjusted EPS of $1.22-$1.30. It anticipates adjusted EPS of $5.34-$5.42 for the year.

ATR’s Share Price Outperforms Industry

ATR shares have gained 40.1% in the past year compared with the industry’s growth of 33.3%.

 

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AptarGroup’s Zacks Rank

The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ATR’s Q3 Peer Performance

Greif, Inc. (GEF - Free Report) reported adjusted EPS of $1.03 in third-quarter fiscal 2024 (ended July 31, 2024), missing the Zacks Consensus Estimate of $1.17. The bottom line fell 41.1% year over year.

GEF’s sales moved up 9.3% year over year to $1.45 billion. The top line surpassed the Zacks Consensus Estimate of $1.42 billion. The upside mainly resulted from higher volumes, increased average selling prices and gains from recent acquisitions.

Packaging Corporation of America (PKG - Free Report) reported adjusted EPS of $2.65 in the third quarter of 2024, beating the Zacks Consensus Estimate of earnings of $2.48. The bottom line was higher than the company’s earnings guidance of $2.45 per share and grew 29% year over year. The upside was driven by higher volume in both segments, and increased prices and mix in the Packaging segment, partially offset by lower prices and mix in the Paper segment.

Sales in the third quarter rose 12.6% year over year to $2.18 billion due to higher volumes. The top line beat the Zacks Consensus Estimate of $2.09 billion.

Packaging Stock Awaiting Results

Sealed Air Corporation (SEE - Free Report) , scheduled to release third-quarter 2024 results on Nov. 7, has a trailing four-quarter average surprise of 35.2%. The Zacks Consensus Estimate for SEE’s third-quarter 2024 earnings is pegged at 66 cents per share, implying a year-over-year fall of 14.3%.

The Zacks Consensus Estimate for the company’s top line is pegged at $1.34 billion, indicating a decrease of 2.9% from the prior-year reported figure.

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