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AptarGroup (ATR) Scales a 52-Week High on Strong Q1 Results
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Shares of AptarGroup, Inc. (ATR - Free Report) scaled a new 52-week high of $83.04 on May 10, eventually closing at $82.87. Year to date, the stock has gained 13.7%. The stock price appreciation came on the back of solid first-quarter results.
AptarGroup has a market cap of $5.17 billion. Average volume of shares traded in the last three months is approximately 310K. The company has outperformed the Zacks Consensus Estimate in three of the four trailing quarters with an average positive surprise of 1.78%. The company has an expected long-term earnings growth rate of 9.33%.
Growth Drivers
AptarGroup’s share price has gained 3.6% since its earnings release on Apr 28, outperforming the Zacks categorized Containers- Paper and Packaging sub industry’s gain of 1.5%.
The company reported record first-quarter 2017 earnings per share of 77 cents on Apr 28. Earnings improved 4% from the year-ago figure of 74 cents, and came in at the higher end of the company’s guided range of 72–77 cents. Earnings also beat the Zacks Consensus Estimate of 75 cents.
For the second quarter, the company anticipates continued growth in the Pharma and Food + Beverage segments. Earnings are projected to be in the range of 92–97 cents, compared with 91 cents per share reported in the prior-year quarter. Adjusting for changes in foreign currency exchange rates, comparable adjusted earnings per share for the prior year were approximately 87 cents.
AptarGroup acquired Mega Airless in 2016. This transaction was a key element of its strategy to expand portfolio and accelerate growth in the airless systems markets. The company has been able to achieve all of the financial targets with Mega through the first year. Going forward, AptarGroup expects more acquisitions will drive growth.
AptarGroup is well positioned to grow over the long term in the different markets as it continues to leverage its technologies and processes across business segments. The company continues to focus on key areas such as innovation, sales, marketing and business development and pursue further growth opportunities.
In the quarter, AptarGroup received an order for the first integrated electronic nasal lockout device (AptarGroup’s eLockout) after a multi-year development phase with Takeda Pharmaceuticals International AG. The device uses advanced electronic technology that ensures safe patient compliance by limiting the number of doses available during a 24 hour period and also features a child-resistant cap. This marks a major milestone for the company given that the eLockout device is the first and only fully integrated electronic nasal drug delivery device to be approved by a European regulatory authority.
Also, AptarGroup signed an agreement to acquire a 20% minority ownership position in Kali Care, a Silicon Valley-based technology company, which provides digital-monitoring systems for ophthalmic medications. Kali Care’s sensing technology helps clinicians to collect real time compliance data. The combination of AptarGroup’s leading dispensing technologies combined with Kali Care’s smart sensors, data analytics and cloud services will be a viable solution for clinicians. This is a significant step in AptarGroup’s efforts to leverage its leading drug delivery technologies to develop the next generation of connected electronic devices. These strategic collaborations underline its endeavors to bring innovation in healthcare.
AptarGroup currently carries a Zacks Rank #2 (Buy).
AGCO has an average positive earnings surprise of 40.39% in the trailing four quarters. AGCO’s shares have gained 11.5% year to date. Caterpillar generated an average positive earnings surprise of 40.25% in the past four quarters and its shares have yielded a year-to-date return of 10%. Rockwell Automation has an average positive earnings surprise of 9.89%. Rockwell Automation shares have gained 17.8% year to date.
The Best & Worst of Zacks
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AptarGroup (ATR) Scales a 52-Week High on Strong Q1 Results
Shares of AptarGroup, Inc. (ATR - Free Report) scaled a new 52-week high of $83.04 on May 10, eventually closing at $82.87. Year to date, the stock has gained 13.7%. The stock price appreciation came on the back of solid first-quarter results.
AptarGroup has a market cap of $5.17 billion. Average volume of shares traded in the last three months is approximately 310K. The company has outperformed the Zacks Consensus Estimate in three of the four trailing quarters with an average positive surprise of 1.78%. The company has an expected long-term earnings growth rate of 9.33%.
Growth Drivers
AptarGroup’s share price has gained 3.6% since its earnings release on Apr 28, outperforming the Zacks categorized Containers- Paper and Packaging sub industry’s gain of 1.5%.
The company reported record first-quarter 2017 earnings per share of 77 cents on Apr 28. Earnings improved 4% from the year-ago figure of 74 cents, and came in at the higher end of the company’s guided range of 72–77 cents. Earnings also beat the Zacks Consensus Estimate of 75 cents.
AptarGroup, Inc. Price and Consensus
AptarGroup, Inc. Price and Consensus | AptarGroup, Inc. Quote
For the second quarter, the company anticipates continued growth in the Pharma and Food + Beverage segments. Earnings are projected to be in the range of 92–97 cents, compared with 91 cents per share reported in the prior-year quarter. Adjusting for changes in foreign currency exchange rates, comparable adjusted earnings per share for the prior year were approximately 87 cents.
AptarGroup acquired Mega Airless in 2016. This transaction was a key element of its strategy to expand portfolio and accelerate growth in the airless systems markets. The company has been able to achieve all of the financial targets with Mega through the first year. Going forward, AptarGroup expects more acquisitions will drive growth.
AptarGroup is well positioned to grow over the long term in the different markets as it continues to leverage its technologies and processes across business segments. The company continues to focus on key areas such as innovation, sales, marketing and business development and pursue further growth opportunities.
In the quarter, AptarGroup received an order for the first integrated electronic nasal lockout device (AptarGroup’s eLockout) after a multi-year development phase with Takeda Pharmaceuticals International AG. The device uses advanced electronic technology that ensures safe patient compliance by limiting the number of doses available during a 24 hour period and also features a child-resistant cap. This marks a major milestone for the company given that the eLockout device is the first and only fully integrated electronic nasal drug delivery device to be approved by a European regulatory authority.
Also, AptarGroup signed an agreement to acquire a 20% minority ownership position in Kali Care, a Silicon Valley-based technology company, which provides digital-monitoring systems for ophthalmic medications. Kali Care’s sensing technology helps clinicians to collect real time compliance data. The combination of AptarGroup’s leading dispensing technologies combined with Kali Care’s smart sensors, data analytics and cloud services will be a viable solution for clinicians. This is a significant step in AptarGroup’s efforts to leverage its leading drug delivery technologies to develop the next generation of connected electronic devices. These strategic collaborations underline its endeavors to bring innovation in healthcare.
AptarGroup currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Other top ranked stocks worth considering in the same sector AGCO Corporation (AGCO - Free Report) , Caterpillar, Inc. (CAT - Free Report) and Rockwell Automation Inc. (ROK - Free Report) . All of them flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AGCO has an average positive earnings surprise of 40.39% in the trailing four quarters. AGCO’s shares have gained 11.5% year to date. Caterpillar generated an average positive earnings surprise of 40.25% in the past four quarters and its shares have yielded a year-to-date return of 10%. Rockwell Automation has an average positive earnings surprise of 9.89%. Rockwell Automation shares have gained 17.8% year to date.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>