AptarGroup, Inc. (NYSE: ATR) stock rose over 2.6% on May 1st, 2019 (As of 11:21 am GMT-4; Source: Google finance) after the company posted better than expected results for the first quarter of FY 19. The company’s Pharma segment had an exceptionally strong quarter with the company witnessing broad-based demand across the company’s portfolio of innovative drug delivery devices. Beauty + Home experienced increased demand from the beauty market with particularly strong demand for the fragrance pumps. Food + Beverage had a good quarter with strong demand for the dispensing closures, which was partially offset by lower custom tooling sales. Profitability improved over the prior year due to the mix of business, benefits from the business transformation and positive effects of a decline in resin cost.
ATR in the first quarter of FY 19 has reported the adjusted earnings per share of $1.07, beating the analysts’ estimates for the adjusted earnings per share of 98 cents. The adjusted earnings per share increased 16% and reported net income has increased 6 percent. The adjusted EBITDA increased 15%, despite foreign currency headwinds. The company had reported the adjusted revenue growth of 6 percent to $744.5 million in the first quarter of FY 19, beating the analysts’ estimates for revenue of $734.2 million. Core sales, excluding the negative impact from changes in currency exchange rates and positive acquisition effects, increased approximately 7%.
The company has authorized the repurchase of up to $350 million of the company’s common stock. The Board also increased the quarterly cash dividend by 6% to $0.36 per share. The payment date is May 22, 2019, to stockholders of record as of May 1, 2019.
For the second quarter of FY 19, Aptar expects earnings per share, excluding any restructuring costs, to be in the range of $1.09 to $1.15. The midrange of this guidance forms an improvement of approximately 7% over the prior year adjusted earnings per share when stated using comparable currency rates. The prior year second quarter effective tax rate on adjusted earnings was 26%. Capital expenditures for 2019 is expected to be in the range of $230 – $250 million. Depreciation & amortization for 2019 is expected to be in the range of $195 – $200 million. The company anticipate continued positive product sales growth across most of the markets. The level of custom tooling sales reported in Q2 2018 is not expected to repeat.