AptarGroup Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

AptarGroup (NYS: ATR) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), AptarGroup beat expectations on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share stayed the same.


Margins contracted across the board.

Revenue details
 AptarGroup recorded revenue of $592.5 million. The 10 analysts polled by S&P Capital IQ expected net sales of $578.7 million on the same basis. GAAP reported sales were 2.8% higher than the prior-year quarter's $576.5 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 $0.64. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.63 per share. GAAP EPS of $0.64 were the same as the prior-year quarter.

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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 32.3%, 130 basis points worse than the prior-year quarter. Operating margin was 11.9%, 20 basis points worse than the prior-year quarter. Net margin was 7.4%, 30 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $618.5 million. On the bottom line, the average EPS estimate is $0.74.

Next year's average estimate for revenue is $2.41 billion. The average EPS estimate is $2.85.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 86 members out of 91 rating the stock outperform, and five members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give AptarGroup a green thumbs-up, and two give 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 $53.57.

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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