AptarGroup Earnings Surpass Estimates in Q1, Shares Rise 1%

Core Insights - AptarGroup, Inc. reported improved margins in Q1 2025, with adjusted earnings per share of $1.20, surpassing the Zacks Consensus Estimate of $1.16, although it represented a 1.6% decrease from $1.22 in the same quarter last year [1][2] Financial Performance - Total revenues for Q1 2025 decreased by 3.1% year over year to $887 million, missing the Zacks Consensus Estimate of $900 million, with core sales remaining flat [3] - Cost of sales fell by 5.5% year over year to $551 million, while gross profit increased by 1.1% to $336 million, resulting in a gross margin of 37.9%, up from 36.3% in the prior year [3] - Selling, research, development, and administrative expenses rose by 1.6% year over year to $155 million, with adjusted operating income increasing by 2.8% to $118 million, leading to an adjusted operating margin of 13.3%, up from 12.5% [4] Segment Performance - The Pharma segment saw a revenue increase of 0.5% year over year to $409.5 million, exceeding the estimate of $403 million, with adjusted operating income rising by 7.7% to $111 million [5] - The Beauty segment experienced a revenue decline of 6.6% year over year to $306 million, falling short of the estimated $313 million, while operating income decreased by 14.2% to $17 million [6] - The Closures segment's revenues decreased by 4.8% year over year to $172 million, also missing the estimate of $179 million, but operating income slightly increased to $13.7 million [7] Cash Position - As of March 31, 2025, AptarGroup reported cash and cash equivalents of $126 million, down from $224 million at the end of 2024, with cash flow from operations at $83 million compared to $92 million in the previous year [8] Future Outlook - The company estimates adjusted earnings per share for Q2 2024 to be between $1.56 and $1.64 [9] Stock Performance - ATR shares have increased by 2.7% over the past year, contrasting with a 12% decline in the industry [10]