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AptarGroup, Inc. (ATR - Free Report) reported fourth-quarter 2022 adjusted earnings per share of 92 cents, beating the Zacks Consensus Estimate of 78 cents. The bottom line increased 4% year over year from 88 cents (including comparable exchange rates). Excluding foreign-currency impact, earnings per share of 92 cents in the fourth quarter of 2022 declined 1.1% from the prior-year quarter’s 93 cents.
On a reported basis, earnings per share were 89 cents compared with the year-ago quarter’s 85 cents.
Total revenues decreased 2.2% year over year to $796 million in the reported quarter. However, the top line surpassed the Zacks Consensus Estimate of $780 million. Core sales, excluding currency and acquisition effects, improved 4% year over year due to strong volume growth in the pharma segment and price increases in the Beauty + Home segment.
Operational Update
Cost of sales decreased 0.3% year over year to $520 million. Gross profit decreased 5.7% year over year to $276 million. The gross margin contracted to 34.6% in the reported quarter compared with the prior-year quarter’s 35.9%.
Selling, research, development and administrative expenses fell 8.7% year over year to $128 million. Adjusted operating income decreased 6% year over year to $88 million. The adjusted operating margin was 11.0% in the reported quarter, down from the year-ago quarter’s 11.4%. Adjusted EBITDA decreased 4.4% year over year to $147 million in the fourth quarter.
AptarGroup, Inc. Price, Consensus and EPS Surprise
Total revenues in the Pharma segment increased 0.9% year over year to $335 million. Adjusted operating income in the quarter fell 2.4% year over year to $84 million.
Total revenues in the Beauty + Home segment fell 4% year over year to $339 million. Adjusted operating income improved 26.5% year over year to $17.5 million in the fourth quarter.
Total revenues in the Food + Beverage segment decreased 5.8% year over year to $122 million. Operating income was $5.7 million in fourth-quarter 2022, reflecting a decline of 21% from the year-ago quarter.
Financial Performance
AptarGroup reported cash and cash equivalents of $142 million as of Dec 31, 2022, up from $123 million as of Dec 31, 2021. The company generated $479 million of cash flow from operations in 2022 compared with $363 million in the last year. As of Dec 31, 2022, long-term debt was approximately $1,053 million, up from $907 million as of Dec 31, 2021.
2022 Results
AptarGroup’s adjusted earnings per share improved 5% year over year to $3.79 in 2021 (including comparable exchange rates). The figure beat the Zacks Consensus Estimate of $3.65. Excluding foreign currency impact, earnings per share of $3.79 in 2022 reflected a 2% decline from $3.88 in 2021.
Including one-time items, the company delivered earnings per share of $3.59 in 2022 compared with $3.61 in 2021. Sales rose 2.9% year over year to $3.3 billion, meeting the Zacks Consensus Estimate.
Outlook
AptarGroup estimates first-quarter 2023 adjusted earnings per share of 85-93 cents. At comparable exchange rates, ATR’s earnings per share were 94 cents in the first quarter of 2022. Excluding foreign currency impact, earnings per share in the first quarter of 2022 was 96 cents.
Price Performance
Shares of the company have lost 4.2% in the past year compared with the industry’s fall of 0.6%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
AptarGroup currently carries a Zacks Rank #3 (Hold).
O-I Glass has an average trailing four-quarter earnings surprise of 16.4%. The Zacks Consensus Estimate for OI’s 2023 earnings is pegged at $2.51 per share. This indicates a 9.13% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved 12.5% north in the past 60 days. OI’s shares gained 58.7% in the last year.
Tenaris has an average trailing four-quarter earnings surprise of 11.5%. The Zacks Consensus Estimate for TS’ 2023 earnings is pegged at $5.32 per share. This indicates a 22.4% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved north by 2.7% in the past 60 days. Its shares gained 39.8% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.08, suggesting an increase of 20.6% from that reported last year. The consensus estimate for fiscal 2023 earnings moved 0.6% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 5.9% in the last year.
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AptarGroup (ATR) Q4 Earnings & Revenues Surpass Estimates
AptarGroup, Inc. (ATR - Free Report) reported fourth-quarter 2022 adjusted earnings per share of 92 cents, beating the Zacks Consensus Estimate of 78 cents. The bottom line increased 4% year over year from 88 cents (including comparable exchange rates). Excluding foreign-currency impact, earnings per share of 92 cents in the fourth quarter of 2022 declined 1.1% from the prior-year quarter’s 93 cents.
On a reported basis, earnings per share were 89 cents compared with the year-ago quarter’s 85 cents.
Total revenues decreased 2.2% year over year to $796 million in the reported quarter. However, the top line surpassed the Zacks Consensus Estimate of $780 million. Core sales, excluding currency and acquisition effects, improved 4% year over year due to strong volume growth in the pharma segment and price increases in the Beauty + Home segment.
Operational Update
Cost of sales decreased 0.3% year over year to $520 million. Gross profit decreased 5.7% year over year to $276 million. The gross margin contracted to 34.6% in the reported quarter compared with the prior-year quarter’s 35.9%.
Selling, research, development and administrative expenses fell 8.7% year over year to $128 million. Adjusted operating income decreased 6% year over year to $88 million. The adjusted operating margin was 11.0% in the reported quarter, down from the year-ago quarter’s 11.4%. Adjusted EBITDA decreased 4.4% year over year to $147 million in the fourth quarter.
AptarGroup, Inc. Price, Consensus and EPS Surprise
AptarGroup, Inc. price-consensus-eps-surprise-chart | AptarGroup, Inc. Quote
Segmental Performance
Total revenues in the Pharma segment increased 0.9% year over year to $335 million. Adjusted operating income in the quarter fell 2.4% year over year to $84 million.
Total revenues in the Beauty + Home segment fell 4% year over year to $339 million. Adjusted operating income improved 26.5% year over year to $17.5 million in the fourth quarter.
Total revenues in the Food + Beverage segment decreased 5.8% year over year to $122 million. Operating income was $5.7 million in fourth-quarter 2022, reflecting a decline of 21% from the year-ago quarter.
Financial Performance
AptarGroup reported cash and cash equivalents of $142 million as of Dec 31, 2022, up from $123 million as of Dec 31, 2021. The company generated $479 million of cash flow from operations in 2022 compared with $363 million in the last year. As of Dec 31, 2022, long-term debt was approximately $1,053 million, up from $907 million as of Dec 31, 2021.
2022 Results
AptarGroup’s adjusted earnings per share improved 5% year over year to $3.79 in 2021 (including comparable exchange rates). The figure beat the Zacks Consensus Estimate of $3.65. Excluding foreign currency impact, earnings per share of $3.79 in 2022 reflected a 2% decline from $3.88 in 2021.
Including one-time items, the company delivered earnings per share of $3.59 in 2022 compared with $3.61 in 2021. Sales rose 2.9% year over year to $3.3 billion, meeting the Zacks Consensus Estimate.
Outlook
AptarGroup estimates first-quarter 2023 adjusted earnings per share of 85-93 cents. At comparable exchange rates, ATR’s earnings per share were 94 cents in the first quarter of 2022. Excluding foreign currency impact, earnings per share in the first quarter of 2022 was 96 cents.
Price Performance
Shares of the company have lost 4.2% in the past year compared with the industry’s fall of 0.6%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
AptarGroup currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are O-I Glass, Inc. (OI - Free Report) , Tenaris (TS - Free Report) and Deere & Company (DE - Free Report) . OI and TS flaunt a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
O-I Glass has an average trailing four-quarter earnings surprise of 16.4%. The Zacks Consensus Estimate for OI’s 2023 earnings is pegged at $2.51 per share. This indicates a 9.13% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved 12.5% north in the past 60 days. OI’s shares gained 58.7% in the last year.
Tenaris has an average trailing four-quarter earnings surprise of 11.5%. The Zacks Consensus Estimate for TS’ 2023 earnings is pegged at $5.32 per share. This indicates a 22.4% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved north by 2.7% in the past 60 days. Its shares gained 39.8% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.08, suggesting an increase of 20.6% from that reported last year. The consensus estimate for fiscal 2023 earnings moved 0.6% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 5.9% in the last year.