The U.S. manufacturing sector is finally showing signs of recovery after months of struggle that saw demand slowing due to inflationary pressures and higher borrowing costs. However, with inflation finally showing signs of cooling, demand is rebounding.The U.S. Census Bureau reported that orders for U.S. manufactured capital goods, made to last more than three years, rose 0.1% in May, higher than the consensus estimate of a decline of 0.1%.Although the rise was lower than April’s jump of 0.6%, the positive ...

AptarGroup (ATR) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors often find i ...

Core Insights - AptarGroup, Inc. reported first-quarter 2024 adjusted earnings per share of $1.26, exceeding the Zacks Consensus Estimate of $1.13, and reflecting a 31% increase from $0.95 in the same quarter last year [1] - Total revenues for the quarter rose 6.4% year over year to $915 million, surpassing the Zacks Consensus Estimate of $897 million [1] - The company estimates second-quarter 2024 adjusted earnings per share to be between $1.30 and $1.38 [5] Operational Update - Cost of sales increased by 4.5% year over year to $583 million, while gross profit rose by 9.9% to $333 million, resulting in a gross margin of 36.3% compared to 35.2% in the prior year [2] - Selling, research, development, and administrative expenses increased by 3.3% year over year to $153 million, with adjusted operating income rising 21.3% to $114.5 million, leading to an adjusted operating margin of 12.5% [2] - Adjusted EBITDA increased by 16.4% year over year to $179 million in the first quarter [2] Segment Performances - Pharma segment revenues increased by 14.4% year over year to $407 million, although it missed the estimate of $431 million; adjusted operating income rose 20.8% to $103 million [3] - Beauty segment revenues rose by 0.3% year over year to $327 million, below the estimate of $333 million; operating income improved 17.6% to $19.9 million [3] - Closures segment revenues increased by 1.8% year over year to $181 million, slightly above the estimate of $180 million; operating income decreased to $13.6 million from $13.9 million in the prior year [3] Financial Performance - As of March 31, 2024, AptarGroup reported cash and cash equivalents of $200 million, down from $224 million as of December 31, 2023; cash flow from operations was $92 million compared to $98 million in the previous year [4] Price Performance - ATR shares have gained 20.4% over the past year, outperforming the industry average increase of 13.2% [6] Peer Performance - Greif reported adjusted earnings per share of $1.27 for the first quarter of fiscal 2024, beating estimates, while sales decreased by 5.1% year over year to $1.20 billion [8] - Packaging Corporation reported adjusted earnings per share of $1.72, beating estimates, with a slight sales increase of 0.2% year over year to $1.98 billion [9] - Graphic Packaging reported adjusted earnings per share of 66 cents, beating estimates, but total revenues decreased by 7.5% year over year to $2.26 billion [9]

Financial Data and Key Metrics Changes - The company achieved core sales growth of 5% and delivered adjusted EPS of $1.26, a more than 30% increase over the prior year quarter [6][15] - Adjusted EBITDA for the quarter was $179 million, increasing by 16% from the prior year's first quarter, driven by expanding margins in all segments [15][18] - Cash flow from operations was approximately $92 million, with free cash flow at approximately $17 million for the quarter [18] Business Line Data and Key Metrics Changes - Pharma segment's core sales increased by 13%, driven by strong growth in proprietary drug delivery systems and elastomeric components [15][16] - Beauty segment's core sales decreased by 1%, with sales of fragrance dispensing solutions slowing after a strong growth period in 2023 [16][17] - Closures segment's core sales increased by 1%, supported by an improving North American market [17] Market Data and Key Metrics Changes - North America showed signs of recovery, particularly in facial skin care sales, while some end markets remained soft [9][16] - Sales in Europe for the Beauty segment normalized after a boom in fragrance launches in the previous year [8][16] - The company noted a positive impact from the improving North American market in the closures segment, despite lower beverage sales in Europe [17] Company Strategy and Development Direction - The company is focused on operational leverage and reducing fixed costs, with a top priority on footprint rationalization [9][10] - Continued investment in innovation and new business development is emphasized, particularly in the Pharma segment [27][52] - The company aims to maintain its long-term core sales growth target range of 7% to 11% for proprietary drug delivery systems [21][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand for proprietary drug delivery systems and elastomeric components for biologics [21][52] - The company anticipates that the destocking in North America for beauty and closures is coming to an end, with a generally positive economic backdrop in Latin America [53] - Management highlighted the importance of sustainability and operational efficiency as competitive advantages [11][52] Other Important Information - The company was recognized as one of Barron's most sustainable U.S. companies for the sixth consecutive year [11] - Capital expenditures for 2024 are expected to be between $280 million and $300 million, primarily allocated toward the Pharma segment [19][20] Q&A Session Summary Question: Expectations for Pharma growth within the 7% to 11% range - Management indicated strong growth in proprietary drug dispensing solutions and a rebound in biologics, with good growth expected in injectables and active material solutions [22][23] Question: Concerns about beverage closures in Europe - Management noted that the transition to tethered closures is ongoing but does not foresee long-term concerns for the beverage business [24] Question: Operating margins in Pharma segment - Management stated that margins were in line with expectations, with the growth in injectables impacting overall margin expansion [26][27] Question: Outlook for fragrance segment - Management expects fragrance to continue growing, albeit at a lower rate, with a projected growth range of 3% to 6% for the year [28][29] Question: Capacity utilization post-expansion in Pharma - Management confirmed that while large new buildings are complete, further capacity can be created within existing facilities [30][31] Question: Demand for emergency medicine products - Management highlighted the importance of Narcan distribution and expressed optimism about the potential for nasal delivery of epinephrine [37][38] Question: Cash flow from operations and SG&A goals - Management explained the slight decrease in cash flow was due to working capital timing and reaffirmed the target for SG&A as a percentage of sales [40][42] Question: Commercialization start-up costs in Pharma - Management confirmed ongoing costs related to injectables ramp-up, which are expected to decrease next year [43][44] Question: Maintenance CapEx outlook - Management indicated that maintenance CapEx is expected to be in the range of $125 million to $150 million, with a significant portion allocated to productivity improvements [45][46]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-11846 AptarGroup, Inc. Delaware 36-3853103 (State of Incorporation) (I.R.S. Employer Identification No.) 265 EXCHANGE DRIVE ...

AptarGroup (ATR) came out with quarterly earnings of $1.26 per share, beating the Zacks Consensus Estimate of $1.13 per share. This compares to earnings of $0.95 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.50%. A quarter ago, it was expected that this maker of consumer-product dispensing systems would post earnings of $1.12 per share when it actually produced earnings of $1.21, delivering a surprise of 8.04%.Over the la ...

Exhibit 99.1 Aptar Reports First Quarter 2024 Results Crystal Lake, Illinois, April 25, 2024 -- AptarGroup, Inc. (NYSE:ATR), a global leader in drug and consumer product dosing, dispensing and protection technologies, today reported strong first quarter results driven by continued growth of the company's proprietary drug delivery systems, increased injectables sales and an improving picture for consumer dispensing technologies in North America. Reported sales increased by 6% and core sales, excluding curren ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium also includes the Zacks Style Scores.What are the Zacks Style Scores?The Zack ...

Investors are always looking for stocks that are poised to beat at earnings season and AptarGroup, Inc. (ATR) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because AptarGroup is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good in ...

Market Overview - The majority of U.S. stocks closed lower on April 15 due to investor skepticism regarding renewed hostilities between Iran and Israel and a rise in Treasury yields, with the 10-year U.S. Treasury note reaching its highest level since November [1] - Despite better-than-expected U.S. retail sales data for March, the broader market experienced a decline [1] Investment Strategy - In the current market environment, it is suggested that investors consider buying low-leverage stocks as a safer investment strategy [1][3] - Low-leverage stocks are defined as those with a debt-to-equity ratio lower than their industry peers, which can help mitigate risks during economic downturns [5][6] Leverage and Its Implications - Leverage refers to the practice of companies borrowing capital to operate and expand, typically through debt financing [2] - Excessive debt financing can lead to significant losses, making it crucial for investors to avoid companies with high debt levels [2][4] Stock Selection Criteria - The recommended criteria for selecting low-leverage stocks include: - Debt/Equity ratio less than the industry median [6] - Current price of at least $10 [6] - Average 20-day volume of at least 50,000 [7] - Earnings per share (EPS) growth greater than the industry median [7] - VGM Score of A or B combined with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [7] - Estimated one-year EPS growth greater than 5% [7] Recommended Stocks - **Freshpet (FRPT)**: Focuses on natural fresh foods for pets, with a four-quarter average earnings surprise of 61.83% and a Zacks Rank of 2. The 2024 sales estimate suggests a 24.3% improvement from 2023 [8] - **AptarGroup (ATR)**: A supplier of innovative packaging solutions, with a long-term earnings growth rate of 7% and a Zacks Rank of 2. The 2024 sales estimate indicates a 4% improvement from the previous year [9] - **Montrose Environmental Group (MEG)**: Provides environmental services, with a four-quarter average earnings surprise of 16% and a Zacks Rank of 2. The 2024 sales estimate implies a 13.8% increase over 2023 [10] - **The Greenbrier Companies (GBX)**: Offers a range of social and medical services, with a Zacks Rank of 1 and a long-term earnings growth rate of 7%. The 2024 earnings estimate has improved by 8.1% over the past 60 days [11] - **PDD Holdings (PDD)**: An e-commerce platform with a long-term earnings growth rate of 49.3% and a Zacks Rank of 1. The 2024 sales estimate suggests a 50% improvement from 2023 [12]