Core Insights - AptarGroup's shares reached a new 52-week high of $140.47 before closing at $137.61, with a market capitalization of $9.09 billion and a Zacks Rank 2 (Buy) [1] - Over the past year, AptarGroup's shares increased by 25.4%, significantly outperforming the industry, which saw a decline of 2.3% [1] Financial Performance - In Q4 2023, AptarGroup reported adjusted earnings per share of $1.21, a 27% increase year over year, with total revenues rising 5.3% to $838 million [2] - For the full year 2023, sales increased by 5% to $3.49 billion, driven by a favorable product mix, volume growth, and pricing [2] - Net income improved by approximately 20% year over year, and adjusted EBITDA increased by 15% due to cost management and improved productivity [2] - Adjusted earnings per share for 2023 rose 24% year over year to $4.78 [2] Segment Performance - The Pharma segment experienced strong demand for drug delivery systems, achieving an 11.7% revenue increase to $1.5 billion in 2023, with operating margins at 25.9% [2] - The Beauty segment's revenues grew by 3.7% year over year to $1.27 billion, despite a decline in core sales in Q4 due to market softness in North America [3] Future Outlook - AptarGroup anticipates continued demand growth for Pharma's drug delivery systems and expects recovery in the Beauty and Closures segments in North America [4] - The company plans to maintain margins through cost-control measures and pricing actions [4] - Earnings estimates for AptarGroup have been revised upward for the ongoing quarter and for 2024 and 2025, indicating positive investor sentiment [4] Strategic Initiatives - AptarGroup is focused on expansion through acquisitions to enhance technology, geographic presence, and product offerings [5] - The company is committed to innovative product launches, maintaining its status as a preferred choice for global brands [5] Financial Health - As of December 31, 2023, AptarGroup had cash and equivalents of approximately $223 million, up from $142 million a year prior [6] - The total debt-to-capital ratio improved to 0.33 from 0.36, allowing the company to invest in growth and return value to shareholders through dividends and share repurchases [6] - The quarterly dividend was increased by around 8% to 41 cents per share, marking a commitment to 30 consecutive years of increasing dividends [6]

Group 1 - AptarGroup, Inc.'s Aptar Digital Health has signed an enterprise agreement with Biogen Inc. to develop digital health solutions for neurological and rare diseases [1] - The collaboration will enhance AptarGroup's position as a partner for the pharmaceutical industry, providing a comprehensive portfolio of device solutions, services, and technology [1] - Biogen will transfer ownership of certain digital health solutions to Aptar Digital Health, which will include product management, software design, secure cloud hosting, and marketing support [1] Group 2 - Biogen has developed flagship digital health products that have benefited patients in over 15 countries, and the collaboration will significantly expand Aptar Digital Health's activities in neurology and immunology [2] - The initial solutions for North America, Europe/the U.K., Asia Pacific, and Latin America include Cleo/Aby and Physio.me, with plans to develop solutions for spinal muscular atrophy, Friedreich's ataxia, and lupus [2] - AptarGroup reported fourth-quarter 2023 adjusted earnings per share of $1.21, exceeding the Zacks Consensus Estimate of $1.12, marking a 27% increase from the previous year's 95 cents per share [2] Group 3 - Total revenues for AptarGroup increased by 5.3% year over year to $838 million, surpassing the Zacks Consensus Estimate of $832 million [3] - The company's shares have gained 28.3% over the past year, significantly outperforming the industry's 0.2% rise [4]

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Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Has AptarGroup (ATR) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.AptarGroup is one of 227 individual stocks in the Industrial Products sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank gauges t ...

Have you been paying attention to shares of AptarGroup (ATR) ? Shares have been on the move with the stock up 9.9% over the past month. The stock hit a new 52-week high of $139.21 in the previous session. AptarGroup has gained 12.4% since the start of the year compared to the 3% move for the Zacks Industrial Products sector and the -0.5% return for the Zacks Containers - Paper and Packaging industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't m ...

Financial Data and Key Metrics Changes - In Q4 2023, Aptar achieved core sales growth of 2% and adjusted EPS of $1.21 per share, a 27% increase year-over-year [4][14] - Adjusted EBITDA margin improved to over 21%, a three-point increase from the prior year's quarter [4] - For the full year, core sales growth was 3%, with adjusted EPS increasing by 24% to $4.78 [5][19] Business Line Data and Key Metrics Changes - Pharma segment core sales increased by 11%, driven by a 24% increase in prescription core sales [15] - Beauty segment core sales decreased by 6%, primarily due to lower sales in North America [16] - Closure segment core sales declined by 4%, impacted by lower resin costs passed to customers [17] Market Data and Key Metrics Changes - Strong demand for proprietary pharma drug delivery systems was noted, particularly in emergency medicines and central nervous system therapeutics [5] - Fragrance sales in Europe remained strong, but overall Beauty segment faced challenges in North America [16] - Beverage core sales increased by 17%, driven by healthy demand across all regions [17] Company Strategy and Development Direction - The company plans to focus on growth and disciplined cost management in 2024, aiming to expand EBITDA margins [7] - Investments in manufacturing operations and capacity expansion are ongoing, with new sites in France, the U.S., China, and India [8] - A joint venture in China aims to enhance competitiveness and local supply chain capabilities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, particularly in the Pharma segment, despite some regional economic weaknesses [22][56] - The company anticipates strong first-quarter performance driven by proprietary drug delivery systems and elastomeric components [22] - Cost reduction efforts are expected to contribute positively to the bottom line throughout 2024 and into 2025 [56] Other Important Information - The company returned over $104 million to shareholders through dividends and share repurchases in 2023 [13] - Aptar received recognition for sustainability, ranking 29th on Newsweek's America's Most Responsible Companies list [12] Q&A Session Summary Question: Did the fourth quarter come in line with internal plans for Pharma growth? - Management noted that the growth was broad-based, particularly in proprietary drug delivery systems, which performed better than expected [26] Question: How has market share trended for elastomers in biologics? - Management does not track market share in that manner but noted strong project builds in the pipeline for injectables [28] Question: What is the outlook for earnings growth as comparisons become more difficult? - Management aims for double-digit EPS growth, focusing on cost management and productivity improvements [30] Question: Should pharma growth remain within target ranges? - Management expects Pharma to normalize growth within the long-term target range of 7% to 11% [35] Question: Can you provide details on the investment in China? - The investment aims to enhance competitiveness and local supply chain capabilities, with more details to be disclosed upon completion [39] Question: What is the cash cost for restructuring in 2024? - Management did not provide specific guidance but indicated that restructuring costs typically are about twice the annual savings [45] Question: Any updates on the pharma pipeline? - Management reported a record year for new product launches and a growing pipeline, which supports confidence in long-term growth targets [48]

Core Viewpoint - AptarGroup, Inc. reported strong fourth-quarter 2023 results, with adjusted earnings per share of $1.21, exceeding estimates and showing a 27% increase year over year [1][5]. Financial Performance - Total revenues for the fourth quarter increased by 5.3% year over year to $838 million, surpassing the Zacks Consensus Estimate of $832 million [1]. - The cost of sales rose by 1.1% year over year to $526 million, while gross profit increased by 13.3% to $313 million, resulting in a gross margin of 37.2% compared to 34.6% in the prior year [2]. - Adjusted operating income grew by 31% year over year to $115 million, with an adjusted operating margin of 13.7%, up from 11% in the previous year [2]. - For the full year 2023, adjusted earnings per share improved by 24% to $4.78, beating the consensus estimate, while total sales rose by 5% to $3.49 billion [5]. Segmental Performance - The Pharma segment saw revenues increase by 14.9% year over year to $385 million, exceeding estimates [3]. - The Beauty segment's revenues decreased by 1.7% to $288 million, while operating income improved by 7.2% to $21 million [3]. - The Closures segment experienced a revenue decline of 1.4% to $166 million, but operating income rose significantly from $3.7 million to $8.3 million [3]. Operational Update - Cash and cash equivalents increased to $224 million as of December 31, 2023, up from $142 million a year earlier, with cash flow from operations rising to $575 million [4]. Outlook - The company estimates first-quarter 2024 adjusted earnings per share to be in the range of $1.10 to $1.18 [6]. Price Performance - Shares of AptarGroup have gained 22.6% over the past year, significantly outperforming the industry average growth of 0.3% [7].

February 9, 2024 Q4 and Full Year 20 ...

Core Insights - Aptar Digital Health has entered into an enterprise agreement with Biogen to operate and develop digital health solutions for neurological and rare diseases, with Biogen transferring ownership of select digital health solutions to Aptar [1][3] - The collaboration will enable Aptar to provide comprehensive capabilities including product management, design, development, maintenance of software applications, secured cloud hosting, and customer support [1][3] Group 1: Digital Health Solutions - Biogen has successfully launched several digital health solutions that have supported hundreds of thousands of patients across over 15 countries [2] - The initial solutions transitioning to Aptar's operation include Cleo™/Aby™, a digital care companion app for multiple sclerosis, and Physio.me, a digital exercise companion for patients with neuromuscular disorders [2] Group 2: Future Collaborations - Biogen and Aptar plan to collaborate on developing new digital health solutions for conditions such as spinal muscular atrophy, Friedreich's ataxia, and lupus in selected countries [3] - The agreement signifies Aptar Digital Health's expansion into neurology and immunology, which are strategic therapeutic areas for the company [3] Group 3: Company Overview - Aptar is a global leader in drug and consumer product dosing, dispensing, and protection technologies, serving markets including pharmaceuticals, beauty, food, and personal care [4] - Aptar Digital Health focuses on creating end-to-end solutions to enhance patient experiences, leveraging a holistic ecosystem of digital interventions [4]

Financial Performance - Net sales for the year ended December 31, 2023, were $3,487.45 million, an increase of 4.97% from $3,322.25 million in 2022 [217]. - Operating income rose to $404.02 million in 2023, up from $379.27 million in 2022, reflecting a growth of 6.52% [217]. - Net income attributable to AptarGroup, Inc. increased to $284.49 million in 2023, compared to $239.29 million in 2022, representing a growth of 18.87% [217]. - Total revenue for the year ended December 31, 2023, was $3,487.5 million, an increase from $3,322.2 million in 2022, representing a growth of approximately 5% [265]. - Net income for 2023 was $284.176 million, an increase of 18.6% compared to $239.555 million in 2022 [225]. - Cash and equivalents increased significantly to $223.64 million in 2023, up from $141.73 million in 2022, marking a growth of 57.73% [220]. - Total assets as of December 31, 2023, were $4,451.89 million, compared to $4,203.46 million in 2022, indicating a growth of 5.91% [220]. - The company reported a net income of $284,487 thousand for the year ended December 31, 2023, compared to $284,176 thousand in 2022, a slight increase [224]. Expenses and Liabilities - The company’s total operating expenses for 2023 were $3,083.43 million, an increase from $2,942.98 million in 2022 [217]. - Total current liabilities increased to $1,251,309 thousand in 2023 from $917,176 thousand in 2022, representing a 36.5% increase [222]. - Long-term obligations decreased to $681,188 thousand in 2023 from $1,052,597 thousand in 2022, a reduction of 35.3% [222]. - The total deferred liabilities and other increased to $198,095 thousand in 2023 from $165,481 thousand in 2022, a growth of 19.6% [222]. - Total liabilities, including accounts payable and accrued liabilities, were $793,089 million in 2023, slightly down from $794,385 million in 2022 [290]. Shareholder Returns - Dividends per common share increased to $1.58 in 2023, up from $1.52 in 2022, reflecting a growth of 3.95% [217]. - Dividends paid in 2023 totaled $103.683 million, compared to $99.461 million in 2022, reflecting a 4.5% increase [225]. - The company repurchased approximately 399 thousand shares of common stock in 2023 at a total cost of $47.6 million, with $60.7 million remaining for future repurchases [370]. Goodwill and Intangible Assets - As of December 31, 2023, the company has approximately $963.4 million in recorded goodwill, which may be subject to impairment based on future business conditions [94]. - Goodwill as of December 31, 2023, totaled $963.418 million, with a decrease in Aptar Beauty's goodwill to $287.097 million due to segment realignment [283]. - Total intangible assets as of December 31, 2023, amounted to $520,233 million, with a net value of $283,211 million after accumulated amortization of $237,022 million [287]. - The aggregate amortization expense for intangible assets for the years ended December 31, 2023, 2022, and 2021 was $44,720 million, $43,574 million, and $41,072 million, respectively [287]. Regulatory and Compliance Risks - The company is subject to various laws and regulations, including data privacy laws like GDPR and CPRA, which can be costly and time-consuming to comply with [95]. - The company's products are regulated by the U.S. FDA and similar agencies, potentially leading to delays in product revenue realization and increased costs [96]. - Future government regulations on healthcare cost containment may impact pharmaceutical sales, affecting prices and demand for the company's products [103]. - The company faces risks from lawsuits and claims, including product liability, which could result in substantial costs and affect normal business operations [97]. Cybersecurity - Increased global cybersecurity threats pose risks to the company's operations, prompting the implementation of a comprehensive cybersecurity strategy [112]. - The company maintains cybersecurity insurance as part of its overall risk management strategy [115]. - The Audit Committee oversees cybersecurity risks and receives regular updates on significant developments related to cybersecurity [119]. - The company has not experienced any material cybersecurity events to date, but acknowledges that such threats could materially affect its business strategy and financial condition [120]. Tax and Accounting Changes - The company is monitoring the impact of global minimum tax rules, effective from January 1, 2024, on its consolidated results for 2024 [105]. - The company has carry forward tax losses in Luxembourg amounting to $131.4 million, with no benefit recorded in the financial statements due to lack of expected realization [244]. - The company is evaluating the impact of ASU 2023-07, which requires enhanced disclosures about significant segment expenses, effective for fiscal years beginning after December 15, 2023 [262]. - The effective income tax rate for 2023 was 24.2%, down from 28.4% in 2022 [294]. Cash Flow and Investments - Net cash provided by operations increased to $575.239 million in 2023, up from $478.617 million in 2022, representing a growth of 20.2% [225]. - Capital expenditures for 2023 were $312.342 million, slightly higher than $310.427 million in 2022 [225]. - The company recognized a gain of $0.8 million from the sale of two buildings in France during the third quarter of 2023 [234]. - The company made acquisitions totaling $16.570 million in 2023, net of cash acquired [225]. Employee Benefits and Compensation - The net periodic benefit cost for domestic plans decreased to $5,891 million in 2023 from $16,512 million in 2022, a decline of 64.3% [328]. - Total contributions to the 401(k) plan were approximately $5.0 million for the years ended December 31, 2023, 2022, and 2021 [344]. - The company contributed $0.5 million to domestic defined benefit plans in 2023 and plans to contribute the same amount in 2024 [338]. Foreign Currency and Hedging - The company maintains a foreign exchange risk management policy to protect against adverse changes in exchange rates, utilizing forward exchange contracts and cross currency swaps [348]. - The company entered into a seven-year USD/EUR fixed-to-fixed cross currency interest rate swap to hedge $203 million of fixed-rate USD debt, with a fair value liability of $22.2 million as of December 31, 2023 [352]. - The total notional amount of outstanding foreign currency forward exchange contracts as of December 31, 2023, was $50.8 million, with a fair value of $0.4 million recorded in prepaid and other assets [353].