Aptar (ATR, Financial) announced its first-quarter revenue of $887 million, slightly falling short of the anticipated $898.64 million. Despite this, the company experienced robust performance in its pharmaceutical and closures divisions, marked by a significant rise in product sales. This growth stems from increased demand for its dosing, dispensing, and protection technologies across diverse markets such as central nervous system therapeutics, emergency medicines, and weight and diabetes management, along with food, beverage, and personal care sectors.
In addition to these operational results, Aptar returned approximately $110 million to its shareholders through dividends and share repurchases, with over half a million shares bought back at a cost of $80 million. Stephan B. Tanda, Aptar's President and CEO, emphasized the positive outcomes in these segments despite the revenue miss.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for AptarGroup Inc (ATR, Financial) is $170.83 with a high estimate of $205.00 and a low estimate of $135.00. The average target implies an upside of 15.21% from the current price of $148.28. More detailed estimate data can be found on the AptarGroup Inc (ATR) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, AptarGroup Inc's (ATR, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for AptarGroup Inc (ATR, Financial) in one year is $135.54, suggesting a downside of 8.59% from the current price of $148.28. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the AptarGroup Inc (ATR) Summary page.
ATR Key Business Developments
Release Date: February 07, 2025
- Core Sales Growth (Q4): 2%
- Adjusted Earnings Per Share (Q4): $1.52
- Adjusted EBITDA Margin (Q4): 23%
- Pharma Segment Core Sales Growth (Full Year): 8%
- Pharma Segment Adjusted EBITDA Margin (Full Year): Approximately 35%
- Injectable Component Sales Growth (2024): 10%
- Active Material Science Sales Growth (2024): 13%
- Beauty Segment Core Sales Decline (Q4): 3%
- Closure Segment Core Sales Growth (Q4): 7%
- Adjusted EBITDA (Q4): $195 million
- Effective Tax Rate (Q4): 13%
- Cash Flow from Operations (Full Year): $643 million
- Capital Expenditures (Full Year): $276 million
- Free Cash Flow (Full Year): $367 million
- Net Debt (End of Year): $800 million
- Leverage Ratio (End of Year): 1.08
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AptarGroup Inc (ATR, Financial) achieved core sales growth of 2% in the fourth quarter, exceeding the top end of their guidance range.
- The pharma segment achieved 8% core sales growth for the year, driven by increased sales of higher value products and royalties.
- The company reported an adjusted EBITDA margin of 23% for the fourth quarter, at the top end of their long-term range.
- AptarGroup Inc (ATR) returned nearly $800 million to shareholders over the last five years through dividends and share repurchases.
- The company was recognized on the Climate A-List by CDP for leadership in corporate sustainability and environmental transparency.
Negative Points
- The beauty segment experienced a decline in core sales due to an unfavorable mix, despite growth in personal care technologies.
- The company anticipates a significant currency headwind and higher effective tax rate impacting first quarter results.
- Consumer healthcare core sales decreased by 17% due to decreased demand for nasal decongestants and other products.
- The beauty segment's adjusted EBITDA margin declined by 230 basis points due to lower sales of higher value prestige products.
- AptarGroup Inc (ATR) faces challenges in the Chinese market, with local brands gaining share over multinationals.
