NYSE$ATR

AptarGroup Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

AptarGroup's second quarter 2020 results were impacted by COVID-19, with Pharma segment growth partially offsetting declines in Beauty + Home and Food + Beverage.

AptarGroup reported a 6% decrease in sales for the second quarter of 2020, primarily due to the negative impacts of COVID-19 on the beauty and beverage markets. The Pharma segment experienced growth, but it was not enough to offset declines in other segments. Earnings per share decreased by 44% to $0.63, while adjusted earnings per share decreased by 30% to $0.80.

  • Reported sales and core sales decreased 6% primarily due to COVID-19 impacts.
  • Pharma segment sales growth of 7% was offset by decreases in Beauty + Home and Food + Beverage.
  • Thank You Award costs of $3.6 million were included in earnings.
  • Reported earnings per share totaled $0.63, a 44% decrease year-over-year.

Headline financials

Total Revenue

$699M

Previous: $743M-5.8%
EPS (adj)

$0.80

Previous: $1.15-30.4%
Total Core Sales Growth

-6.0%

No prior period
Pharma Core Sales Growth

6.0%

No prior period
Beauty Core Sales Growth

-13.0%

No prior period
Closures Core Sales Growth

-15.0%

No prior period
Capital Expenditures

-$123M

Previous: -$125M+1.4%
Free Cash Flow

-$81.1M

Previous: -$50.9M-59.5%
Net Income

$41.9M

Previous: $73.9M-43.4%
Operating Income

$70.5M

Previous: $110M-35.8%
Gross Profit

$699M

Previous: $743M-5.8%
Cash & Equivalents

$248M

Previous: $303M-18.3%
Total Assets

$3.81B

Previous: $3.59B+6.3%
Stock-Based Comp

$8.46M

Previous: $6.41M+32.0%

Revenue & EPS history

AptarGroup · Revenue · Quarterly

$699M

Q2 2020-5.8%vs Q2 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

AptarGroup · $699M total across 3 segments · Q2 2020

  • Pharma
    $301M+6.9%
  • Beauty
    $300M-12.4%
  • Closures
    $98.3M-17.2%

Forward guidance

Aptar expects earnings per share for the third quarter of 2020, excluding any restructuring expenses and acquisition-related costs, to be in the range of $0.80 to $0.88. This guidance is based on an effective tax rate range of 28% to 30%.

Tailwinds

  • Gradual improvement is expected in the second half of the year.
  • Guidance is based on an effective tax rate range of 28% to 30%.
  • The company is closely monitoring the changing dynamics around the world as countries continue to reopen their economies.
  • The payment date is August 19, 2020, to stockholders of record as of July 29, 2020.
  • Continued health and safety measures being implemented across its global facilities.

Headwinds

  • There is economic uncertainty in some of our markets, driven in part by the recent spike in COVID-19 cases in many regions of the world.
  • Improvement will be heavily dependent on the pace and breadth of the resumption of travel activity.
  • Improvement will be heavily dependent on the reopening of retail stores.
  • Improvement will be heavily dependent on general consumer spending confidence.
  • Recent rise in confirmed cases of COVID-19, especially in the U.S., has caused several local governments to reinstitute confinement protocols and this could impact the pace of economic recovery in the U.S. and elsewhere.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.3%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+1.2%

Avg return

30 days after

63%

43 / 68 earnings

Positive

+9.2%

Q4 2017

Best reaction

-9.0%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.3%-0.8%-6.4%
Q4 2025+8.3%+12.9%+6.5%
Q3 2025-9.0%-7.1%+0.3%
Q1 2025+2.3%+2.1%+6.8%
Q4 2024-8.5%-9.4%-2.3%
Q3 2024+0.8%+0.6%+2.3%
Q2 2024+1.7%+1.1%+4.4%
Q1 2024+2.4%+3.1%+5.8%
Q4 2023+5.4%+3.1%+8.6%
Q3 2023+0.1%-0.9%+4.2%
Q2 2023+3.2%+2.1%+6.3%
Q1 2023+2.4%+4.1%-1.4%
Q4 2022+5.7%+4.2%+0.3%
Q3 2022+2.1%-1.9%+6.9%
Q2 2022+1.6%+0.5%-1.5%
Q1 2022+3.4%+2.5%-2.0%
Q4 2021+3.3%+3.8%+2.7%
Q3 2021-3.6%+1.7%+1.0%
Q2 2021-6.3%-6.6%-2.3%
Q1 2021-0.2%+2.6%-2.5%
Q4 2020-7.7%-10.4%-2.7%
Q3 2020+1.6%+6.4%+13.3%
Q2 2020-3.0%-0.2%-0.6%
Q1 2020-3.6%-4.1%+1.2%
Q4 2019-2.6%-7.0%-19.6%
Q3 2019-7.1%-8.9%-6.0%
Q2 2019-5.0%-5.4%-1.3%
Q1 2019+1.3%+2.3%+2.0%
Q4 2018+1.5%+0.0%+2.2%
Q3 2018+1.8%+2.1%+2.0%
Q2 2018+8.6%+8.1%+9.6%
Q1 2018+0.3%+0.4%+1.0%
Q4 2017+9.2%+11.8%+9.6%
Q3 2017-0.6%-1.6%-2.5%
Q2 2017-6.5%-6.3%-6.4%
Q1 2017+1.2%+1.1%+6.3%
Q4 2016+1.7%+0.4%+4.4%
Q3 2016-4.3%-7.4%-0.3%
Q2 2016-1.9%-3.9%-1.6%
Q1 2016-3.1%
Q4 2015-2.8%
Q3 2015+2.4%
Q2 2015+8.3%
Q1 2015+2.4%
Q4 2014+1.8%
Q3 2014+2.0%
Q2 2014-3.5%
Q1 2014-0.1%
Q4 2013+1.9%
Q3 2013+0.2%
Q2 2013-2.1%
Q1 2013-2.0%
Q4 2012-0.8%
Q3 2012-3.5%
Q2 2012+2.6%
Q1 2012+0.9%
Q4 2011+0.1%
Q3 2011+5.8%
Q2 2011-5.0%
Q1 2010+2.2%
Q1 2011+2.3%
Q4 2008+1.5%
Q4 2010+1.5%
Q3 2010+2.9%
Q3 2009+2.9%
Q4 2009+0.5%
Q2 2009+0.5%
Q2 2010+0.5%

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