The Gory Details on AptarGroup's Double Fumble

Seth Jayson, The Motley Fool
Updated

AptarGroup (NYS: ATR) reported earnings on Feb. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AptarGroup missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share contracted.

Gross margins were steady, operating margins were steady, net margins contracted.

Revenue details
AptarGroup reported revenue of $544.5 million. The eight analysts polled by S&P Capital IQ anticipated revenue of $568.8 million on the same basis. GAAP reported sales were 2.6% higher than the prior-year quarter's $530.8 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.57. The seven earnings estimates compiled by S&P Capital IQ predicted $0.60 per share. GAAP EPS of $0.57 for Q4 were 1.7% lower than the prior-year quarter's $0.58 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 32.2%, about the same as the prior-year quarter. Operating margin was 11.5%, about the same as the prior-year quarter. Net margin was 7.1%, 60 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $597.1 million. On the bottom line, the average EPS estimate is $0.68.

Next year's average estimate for revenue is $2.45 billion. The average EPS estimate is $2.99.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 84 members out of 89 rating the stock outperform, and five members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give AptarGroup a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AptarGroup is hold, with an average price target of $53.00.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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