AptarGroup (ATR) Q4 Earnings Top Estimates, Revenues Rise Y/Y

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].