Back to top

Image: Bigstock

AptarGroup's (ATR) Q1 Earnings & Revenues Trump, Up Y/Y

Read MoreHide Full Article

AptarGroup, Inc. (ATR - Free Report) delivered first-quarter 2019 adjusted earnings per share of $1.07, beating the Zacks Consensus Estimate of 98 cents by a margin of 9.2%. Further, the bottom line grew 16% year over year and came in higher than management’s guided range between 95 cents and $1.00.
 
On a reported basis, the company recorded earnings of 96 cents per share compared with the year-ago quarter’s reported figure of 92 cents.

AptarGroup achieved year-over-year solid core sales growth across all segments during the reported quarter. Also, benefits from business transformation, business mix and lower resin cost aided its profit margin during the quarter.
 
Operational Update
 
Total revenues improved 6% year over year to $744.5 million in the reported quarter. Core sales growth was at 7%, acquisitions contributed 6%, while unfavorable exchange rates impacted sales by 7%. Further, the top line beat the Zacks Consensus Estimate of $734 million.

Cost of sales rose 3% to $469 million from $456 million recorded in the year-ago quarter. Gross profit increased 10.8% year over year to $275 million. Gross margin came in at 36.9% during the first quarter, up from the prior-year quarter’s 35.2%.

Selling, research, development and administrative expenses rose 8% year over year to $121 million. Adjusted operating income went up 22% year over year to $99.5 million. The company reported operating margin of 13.4% compared with the prior-year’s 11.6%. Adjusted EBITDA increased 15% year over year to $154 million in the first quarter.

AptarGroup, Inc. Price, Consensus and EPS Surprise

Segmental Performance
 
Total revenues in the Beauty + Homes segment declined 2.7% year over year to $367.6 million. Operating income in the March-end quarter was up 2.2% year over year to $32.4 million.
 
Total revenues in the Pharma segment increased 18.5% year over year to $272.7 million. Operating income climbed 19% year over year to $81.6 million in the first quarter.
 
Total revenues in the Food + Beverage segment climbed 9.4% year over year to $104 million. Operating income jumped 32.2% year over year to $8.2 million.

Financial Performance
 
AptarGroup reported cash and cash equivalents of $217 million at the end of the first quarter, down from $262 million as of Dec 31, 2018. At the quarter’s end, long-term debt was approximately $1,141 million, up from $1,125 million as of Dec 31, 2018.

AptarGroup's board has authorized share repurchase of $350 million and hiked its quarterly cash dividend by 6% to 36 cents per share. The dividend is payable on May 22, to shareholders of record as of May 1, 2019.

Outlook
 
AptarGroup projects adjusted earnings per share for second-quarter 2019 at $1.09-$1.15. The guidance reflects year-over-year growth of 7% at the mid-point. It also reflects a higher tax rate of 29% to 31%. Moreover, the company expects impressive product sales growth across all segments in the current quarter.

Share Price Performance

Shares of the company have appreciated around 22.5% over the past year, outperforming the industry’s 4.1% growth.


 
Zacks Rank & Other Stocks to Consider
 
AptarGroup currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the Industrial Products sector are DMC Global Inc. (BOOM - Free Report) , Lawson Products, Inc. and DXP Enterprises, Inc. (DXPE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

DMC Global has an estimated earnings growth rate of 77.3% for the ongoing year. The company’s shares have soared 78.5%, in the past year.

Lawson Products has a stellar expected earnings growth rate of 102.5% for the current year. The stock has appreciated 37% in a year’s time.

DXP Enterprises has a projected earnings growth rate of 21.6% for 2019. The company’s shares have gained 12.5%, over the past year.

Today's Best Stocks from Zacks
 
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
 
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
 
See their latest picks free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


DXP Enterprises, Inc. (DXPE) - free report >>

AptarGroup, Inc. (ATR) - free report >>

DMC Global (BOOM) - free report >>

Published in