Stock To watch: AptarGroup, Inc. (NYSE : ATR)

On Wednesday AptarGroup, Inc. (NYSE : ATR) has shown upward move of +0.18%. The trading volume was recorded to 43,098 shares as compared to average traded volume of 292,703 shares with SMA50 of $88.93 above from the SMA 200 of $87.46.

AptarGroup, Inc. (ATR) recently stated fourth quarter and yearly results for 2017. The Company also reported details of its business transformation plan and affirmed its long-term financial targets.

Fourth Quarter Summary

Stated sales raised 16% driven by robust core sales growth in each business section (+ 10%) and the positive effect of currency rates (+ 6%)

Core sales raised in each end market and in each region

Stated net income (8% of net sales) was $50M (equal to the previous year)

Adjusted EBITDA (19% of net sales) raised to $118M (+ 9%)

Stated earnings per share of $0.77 (equal to the previous year) included negative impacts of recently enacted tax reform legislation

Comparable adjusted earnings per share of $0.81 vs. $0.77 in the previous year (+ 5%)

Business transformation plan to drive growth and yield yearly recurring incremental EBITDA of about $80M by the end of 2020 with implementation costs predictable to be about $90M

Fourth Quarter Results

For the quarter ended December 31, 2017, stated sales raised 16% over the previous year to $626M. Core sales, which exclude the positive impact from changes in currency exchange rates, raised about 10%.

Aptar’s stated earnings per share of $0.77 equaled the previous year level despite the negative impacts of recently enacted tax reform legislation. Comparable adjusted earnings per share raised 5% to $0.81 contrast to $0.77 in the previous year.

Yearly Results

For the year ended December 31, 2017, stated sales raised 6% to $2.5B from $2.3B a year ago. Core sales, which exclude the positive impacts from acquisitions and changes in currency exchange rates, raised about 4%.

For the year 2017, Aptar stated earnings per share of $3.41, an raise of 8% over $3.17 stated a year ago. Comparable adjusted earnings per share raised 6% to $3.44 contrast to $3.26 a year ago.

In late 2017, Aptar began a business transformation plan to become a more agile, competitive and consumer-centric business. The plan includes a wide range of initiatives to drive profitable sales growth, raise operational excellence, enhance our approach to innovation and improve organizational health and effectiveness. The primary focus of the plan will be the Beauty + Home section and certain global G&A functions, as we work to improve efficiency and attain our long-term financial objectives.

Growth: Our transformation initiatives are intended to enable leaner, focused, agile teams that will use exclusive local market insights to provide our consumers with even greater service and innovative solutions. The Beauty + Home section has already seen top line improvements in the fourth quarter and has achieved core sales growth of 2% for 2017.

Incremental EBITDA: We expect the business transformation to yield yearly recurring incremental EBITDA of about $80M by the end of 2020, principally within the Beauty + Home section. The initial focus is on executing commercial growth initiatives, procurement savings, improvements in operating efficiencies and better leveraging our G&A functions.

Implementation & Investment Costs: We expect to incur implementation costs of about $90M over the next three years (including $2M recognized in the fourth quarter of 2017) with the costs being stated in the quarter in which they are recognized for accounting purposes. We also anticipate making capital investments related to the business transformation plan of about $45M, the majority of which will occur in 2018. We expect nearly all the cash needed to fund these capital expenditures will come from improvements in working capital.

Organizational Health & Effectiveness: We are undertaking steps to improve the safety performance, health and effectiveness of our organization, including fostering an entrepreneurial spirit with a culture of accountability, leadership development programs, greater employee engagement and improved communication at all levels. We believe our healthy, empowered and committed organization will generate value for all stakeholders for years to come.

The stock’s price is trading higher to its 52 week low of $75.49 with 14.29% and moving up from its 52 week high price of $92.32 with 14.29%. It touched its peak point at $88.80 and its lowest price point stood at $87.84 in last session after starting the trading at $88.08

View all contributions by

April Pardo:  Technology Reporter I am April Pardo and i am passionate about business and finance news with over 5 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind with a vision to broaden the company’s readership throughout 2014. I am an editor and reporter of “Technology” Category. Address:  2468 Norma Lane Shreveport, LA 71101 Phone:  (+1)- 318-542-8373 Email:  [email protected]

Leave a Comment