AptarGroup, Inc. (ATR) reported fourth-quarter earnings in line with expectations. However, Q3 sales topped analyst expectations driven by robust growth in the Beauty + Home and Food + Beverage segments.
Aptar designs and manufactures a wide range of drug delivery, consumer product dispensing, and active material science solutions for clients globally.
Adjusted earnings of $0.94 per share matched analysts’ expectations. The company reported earnings of $1.01 per share in the prior-year period.
Positively, net sales jumped 9% year-over-year to $825.4 million and exceeded consensus estimates of $810.57 million. The increase in Q3 revenue was primarily attributable to double-digit growth in the Beauty + Home segment (11% growth), as well as the Food + Beverage segment (30% growth), driven by higher prices and growth in volumes.
Looking ahead to Q4, AptarGroup forecast earnings per share to range between $0.88 and $0.96, while the consensus estimate is pegged at $1 per share. (See AptarGroup stock charts on TipRanks)
Sharing his views on the coming months, CEO Stephan B. Tanda commented, “Inflation continues to escalate, and the pace of recovery is more uneven than previously expected due to the surge of the COVID-19 Delta variant during the summer months and supply chain disruptions.”
He added, “However, we anticipate further, gradual progress in the beauty market and continued good sales momentum in elastomer components and active material solutions.”
Yesterday, Robert W. Baird analyst Ghansham Panjabi maintained a Hold rating on AptarGroup with a price target of $135 (7.2% upside potential).
Panjabi forecasts the company to report earnings of $0.84 per share for the fourth quarter of 2021.
Overall, the stock has a Moderate Buy consensus rating based on 3 Buys and 3 Hold. The average AptarGroup price target of $151.25 implies 20.1% upside potential from current levels. Shares of ATR have jumped 11.6% over the past year.