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AptarGroup (ATR) Q4 Earnings & Sales Beat Estimates, Up Y/Y
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AptarGroup, Inc.’s (ATR - Free Report) adjusted earnings per share was 92 cents in fourth-quarter 2020, surpassing the Zacks Consensus Estimate of 90 cents. The bottom line also improved 8% year over year.
On a reported basis, earnings came in at 79 cents per share compared with the year-ago quarter’s 73 cents per share.
Total revenues increased 12% year over year to $749 million during the reported quarter. The top line also beat the Zacks Consensus Estimate of $736 million. Core sales, excluding currency and acquisition effects, increased 5% year over year. Solid underlying demand for medicines drove sale growth in the Pharma segment. Demand for active packaging solutions used with healthcare applications also increased. Further, the company witnessed continued strong demand from personal care and home care markets. This was offset by weakness in beauty markets and lower custom tooling sales.
AptarGroup, Inc. Price, Consensus and EPS Surprise
Cost of sales climbed 8% year over year to $470 million. Gross profit increased 18% year over year to $279 million. Gross margin surged 37.3% during the fourth quarter compared with the prior-year quarter’s 35.1%.
Selling, research, development and administrative expenses flared up 19% year over year to $129 million. Adjusted operating income advanced 15% year over year to $84 million. Operating margin came in at 11.2% in the reported quarter, up from the year-ago quarter’s 10.9%. Adjusted EBITDA increased 14% year on year to $149 million in the October-December quarter.
Segmental Performance
Total revenues in the Beauty + Homes segment grew 7% year over year to $337 million. Adjusted operating income in the third quarter plunged 38% year over year to $10.6 million.
Total revenues in the Pharma segment rose 17% year over year to $312 million. Adjusted operating income amounted to $84 million for the December-end quarter compared with the year-earlier quarter’s $76 million.
Total revenues in the Food + Beverage segment increased 13% year over year to $101 million. Operating income was $8.7 million in fourth-quarter 2020, reflecting a substantial improvement from $2.2 million in the year-ago quarter.
Financial Performance
AptarGroup reported cash and cash equivalents of $300 million as of Dec 31, 2020, up from $242 million as of Dec 31, 2019. The company generated $570 million of cash flow from operations in the 2020 compared with the $514 million witnessed last year. As of Dec 31, 2020, long-term debt was approximately $1,055 million, down from $1,085 million as of Dec 31, 2019.
2020 Results
AptarGroup’s adjusted earnings per share in 2020 was $3.65, down 19% from the prior-year’s figure of $4.01. However, the bottom line beat the Zacks Consensus Estimate of $3.63. Including one-time items, the company delivered an earnings per share of $3.21 in 2020 compared with $3.66 in 2019. Sales increased 2% year over year to $2,929 million from the prior-year figure of $2,860 million. The top line surpassed the Zacks Consensus Estimate of $2,920 million.
Outlook
AptarGroup estimates first-quarter 2021 adjusted earnings per share in the range of 86 cents to 94 cents.
Price Performance
Shares of the company have gained 22.7% in the past year, compared with the industry’s growth of 22.5%.
Zacks Rank and Stocks to Consider
AptarGroup currently carries a Zacks Rank #3 (Hold).
AGCO has an estimated earnings growth rate of 30% for 2021. The company’s shares have rallied 73% in the past year.
Avery Dennison has a projected earnings growth rate of 11% for the current year. Shares of the company have gained 26% over the past year.
Myers Industries has an expected earnings growth rate of 16% for the ongoing year. In the past year, the stock has surged 36%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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AptarGroup (ATR) Q4 Earnings & Sales Beat Estimates, Up Y/Y
AptarGroup, Inc.’s (ATR - Free Report) adjusted earnings per share was 92 cents in fourth-quarter 2020, surpassing the Zacks Consensus Estimate of 90 cents. The bottom line also improved 8% year over year.
On a reported basis, earnings came in at 79 cents per share compared with the year-ago quarter’s 73 cents per share.
Total revenues increased 12% year over year to $749 million during the reported quarter. The top line also beat the Zacks Consensus Estimate of $736 million. Core sales, excluding currency and acquisition effects, increased 5% year over year. Solid underlying demand for medicines drove sale growth in the Pharma segment. Demand for active packaging solutions used with healthcare applications also increased. Further, the company witnessed continued strong demand from personal care and home care markets. This was offset by weakness in beauty markets and lower custom tooling sales.
AptarGroup, Inc. Price, Consensus and EPS Surprise
AptarGroup, Inc. price-consensus-eps-surprise-chart | AptarGroup, Inc. Quote
Operational Update
Cost of sales climbed 8% year over year to $470 million. Gross profit increased 18% year over year to $279 million. Gross margin surged 37.3% during the fourth quarter compared with the prior-year quarter’s 35.1%.
Selling, research, development and administrative expenses flared up 19% year over year to $129 million. Adjusted operating income advanced 15% year over year to $84 million. Operating margin came in at 11.2% in the reported quarter, up from the year-ago quarter’s 10.9%. Adjusted EBITDA increased 14% year on year to $149 million in the October-December quarter.
Segmental Performance
Total revenues in the Beauty + Homes segment grew 7% year over year to $337 million. Adjusted operating income in the third quarter plunged 38% year over year to $10.6 million.
Total revenues in the Pharma segment rose 17% year over year to $312 million. Adjusted operating income amounted to $84 million for the December-end quarter compared with the year-earlier quarter’s $76 million.
Total revenues in the Food + Beverage segment increased 13% year over year to $101 million. Operating income was $8.7 million in fourth-quarter 2020, reflecting a substantial improvement from $2.2 million in the year-ago quarter.
Financial Performance
AptarGroup reported cash and cash equivalents of $300 million as of Dec 31, 2020, up from $242 million as of Dec 31, 2019. The company generated $570 million of cash flow from operations in the 2020 compared with the $514 million witnessed last year. As of Dec 31, 2020, long-term debt was approximately $1,055 million, down from $1,085 million as of Dec 31, 2019.
2020 Results
AptarGroup’s adjusted earnings per share in 2020 was $3.65, down 19% from the prior-year’s figure of $4.01. However, the bottom line beat the Zacks Consensus Estimate of $3.63. Including one-time items, the company delivered an earnings per share of $3.21 in 2020 compared with $3.66 in 2019. Sales increased 2% year over year to $2,929 million from the prior-year figure of $2,860 million. The top line surpassed the Zacks Consensus Estimate of $2,920 million.
Outlook
AptarGroup estimates first-quarter 2021 adjusted earnings per share in the range of 86 cents to 94 cents.
Price Performance
Shares of the company have gained 22.7% in the past year, compared with the industry’s growth of 22.5%.
Zacks Rank and Stocks to Consider
AptarGroup currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include AGCO Corporation (AGCO - Free Report) , Avery Dennison Corporation (AVY - Free Report) and Myers Industries, Inc. (MYE - Free Report) . All of these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AGCO has an estimated earnings growth rate of 30% for 2021. The company’s shares have rallied 73% in the past year.
Avery Dennison has a projected earnings growth rate of 11% for the current year. Shares of the company have gained 26% over the past year.
Myers Industries has an expected earnings growth rate of 16% for the ongoing year. In the past year, the stock has surged 36%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>