AptarGroup, Inc. ATR reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.52, which beat the Zacks Consensus Estimate of $1.26. The bottom line increased 27% year over year from $1.20 per share (including comparable exchange rates). The company expected fourth-quarter 2024 adjusted EPS to be in the range of $1.22-$1.30.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
On a reported basis, EPS was $1.49 compared with the year-ago quarter’s 93 cents.
AptarGroup, Inc. Price, Consensus and EPS Surprise
AptarGroup, Inc. price-consensus-eps-surprise-chart | AptarGroup, Inc. Quote
AptarGroup’s Q4 Revenues Up 1% Y/Y
Total revenues increased 1.1% year over year to $848 million. However, the reported figure missed the Zacks Consensus Estimate of $858 million. Core sales, excluding currency and acquisition effects, improved 2% year over year as improved performances in Closures and Pharma were offset by the weaker performance of the Beauty segment. We expected core sales to rise 2.7% in the quarter.
ATR’s Margins Rise Y/Y in Q4
Cost of sales fell 1.4% year over year to $518.7 million. Gross profit improved 5.5% year over year to $329 million. The gross margin expanded to 38.8% from the prior-year quarter’s 37.2%.
Selling, research, development and administrative expenses inched up 0.2% year over year to $138.5 million. Adjusted operating income increased 10.8% year over year to $127.5 million. The adjusted operating margin was 15%, up from the year-ago quarter’s 13.7%.
Adjusted EBITDA rose 8.6% year over year to $194.9 million. Adjusted EBITDA margin was 23% in the fourth quarter compared with 21.4% in the fourth quarter of 2023.
AptarGroup’s Segmental Performances in Q4
Total revenues in the Pharma segment increased 4.1% year over year to $400.7 million. However, the segment’s revenues missed our estimate of $412 million.
Core sales increased 4% from the prior year quarter, aided by the ongoing demand for proprietary drug delivery systems used for allergic rhinitis, emergency medicines and central nervous system therapies, as well as royalty revenues. However, sales from nasal decongestants and saline rinses were down in the quarter due to the weaker 2023-2024 cold and flu season driving customers to adjust inventories. The active material science division grew double digits, reflecting higher tooling sales and a more favorable product mix.
The segment’s adjusted operating income rose 8.6% year over year to $112 million. We predicted a quarterly adjusted operating income of $104 million.
Total revenues in the Beauty segment decreased 4.8% year over year to $274 million due to mix and lower tooling sales. Our estimation for the segment’s revenues was $271.5 million.
Unit volume for the Beauty segment showed a modest improvement, driven by improving sales in North America and Latin America. While the segment saw sales growth in masstige fragrance, personal care and home care, this was not enough to mitigate the impact of lower tooling sales, and decline in sales of prestige fragrance and skincare technologies.
The segment’s adjusted operating income plunged 37% year over year to $13.2 million. The reported figure missed our operating income prediction of $20 million.
Total revenues in the Closures segment rose 4.6% year over year to $173 million. Core sales increased 7%, supported by demand across a number of end markets including food and beverage.
We estimated revenues of $174 million for the quarter. Adjusted operating income was $13 million, reflecting a 60% surge from the year-ago quarter on the back of higher sales and gains from cost containment efforts. Our prediction for the quarter was $12 million.
ATR’s Cash Position at Q4 End
AptarGroup reported cash and cash equivalents of $223.8 million as of Dec. 31, 2024, compared with $223.6 million as of Dec. 31, 2023. The company generated $643 million of cash flow from operations in 2024 compared with $575 million in the prior year.
AptarGroup’s board of directors have authorized the repurchase of $500 million of its common stock, which replaces all previous authorizations. The board also approved the quarterly cash dividend of 45 cents per share.
The dividend will be paid on Feb. 26, 2025, to stockholders of record as of Feb. 5, 2025. During the fourth quarter, AptarGroup repurchased around 218,000 shares for approximately $37 million.
AptarGroup’s Performance in 2024
AptarGroup’s adjusted EPS increased 17.7% year over year to $5.65 in 2024. The bottom line beat the Zacks Consensus Estimate of earnings of $5.38 per share. The company’s guidance for the year was $5.34-$5.42 per share.
Revenues increased 2.7% year over year to $3.58 billion. The metric missed the consensus estimate of $3.6 billion.
AptarGroup’s Q125 Outlook
The company expects first-quarter 2025 adjusted EPS to be in the band of $1.11-$1.19.
ATR Stock’s Price Performance
ATR shares have gained 4% in the past year compared with the industry’s 9.5% growth.
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AptarGroup’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performances of ATR’s Peers
Packaging Corporation of America PKG reported an adjusted EPS of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year. The upside was driven by higher prices and mix, improved volume in both segments, and lower freight and logistics expenses. However, these gains were somewhat offset by an increase in operating expenses scheduled maintenance outage expenses, depreciation expenses and other expenses.
Sales in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the Zacks Consensus Estimate of $2.13 billion.
Amcor Plc AMCR reported second-quarter fiscal 2025 (ended Dec. 31, 2024) adjusted EPS of 16 cents, which met the Zacks Consensus Estimate. The company reported earnings of around 16 cents per share in the year-ago quarter. Gains from improved volumes, continued strong cost performance and benefits from restructuring initiatives were offset by unfavorable impacts from price/mix.
Amcor’s revenues dipped 0.3% year over year to $3.24 billion. The downside was due to a 1% unfavorable impact of foreign exchange and a 1% impact of pass-through of lower raw material costs. The volume rose 2.3% from the year-ago quarter. Price/mix had an unfavorable impact of approximately 2%, primarily due to lower volumes in high-value healthcare categories. The top line missed the Zacks Consensus Estimate of $3.44 billion.
Crown Holdings, Inc. CCK reported fourth-quarter 2024 adjusted EPS of $1.59, which beat the Zacks Consensus Estimate of $1.52. The bottom line increased 28% year over year and surpassed the company’s guidance of $1.45-$1.55.
Net sales totaled $2.90 billion, up 1.6% from the year-ago quarter’s $2.86 billion. The upside was driven by increased global beverage can volumes and higher North America food can shipments. However, the reported figure missed the Zacks Consensus Estimate of $2.91 billion.
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