AptarGroup (ATR) Q1 Earnings Top Estimates, Revenues Rise Y/Y

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]