Company Reports

Revenue grew 6% year on year on a reported basis and 1% on a core basis, and prescription core sales declined 7%. Adjusted EBITDA margin declined 190 basis points to 20.7%. Shares closed approximately unchanged from the previous day's close.

Revenue grew 11% year on year on a reported basis and was flat on a core basis, with prescription core sales declining 10% due to a high comparison period and lower emergency medicine sales. Adjusted EBITDA margin declined 150 basis points to 19.2%. Shares closed down 4% from the previous close.

Aptar's fourth-quarter revenue grew 14% year on year on a reported basis and 5% on a core basis, with prescription medicines rising 1% despite inventory destocking in emergency medicines. Adjusted EBITDA margin declined 320 basis points to 19.8%. Shares closed up 8% on Feb. 6.

Aptar is a global leader in dispensing technologies and operates under three business segments, Aptar Pharma, Aptar Beauty, and Aptar Closures. The company specializes in various drug dispensing solutions including nasal spray inhalers and elastomer components for injectable drugs, high-end fragrance pumps, and food dispensing closures. While Aptar’s portfolio includes lower-margin products such as shampoo and soap pumps and caps for sauce bottles, it has intentionally focused on growing the higher-margin healthcare business over the past decade, which now accounts for about two thirds of operating profits.

Aptar's third-quarter revenue grew 6% year on year on a reported basis and 1% on a core basis, with prescription medicines rising 3% due to strong demand for central nervous system therapies and asthma treatments. Adjusted EBITDA margin improved 30 basis points.

Aptar's second-quarter revenue grew 6% year over year on a reported basis and 3% on a constant currency basis, with all segments experiencing positive growth. Adjusted EBITDA margin improved 140 basis points due to increased sales of a higher-value revenue mix and ongoing operational efficiencies.

Aptar reported 3% year-on-year declines in sales on a reported basis but flat sales on a constant currency basis. Expected declines in beauty and closures offset the 3% constant-currency growth in the pharma segment, which enjoyed strong growth in prescription core sales.

Over the past week, life science shares have experienced significant volatility related to a deepening trade war with China and as broader US tariffs were implemented and then paused for 90 days to allow time for negotiations. A pharmaceutical-specific tariff is also being considered.

Aptar is a global leader in dispensing technologies and operates under three business segments, Aptar Pharma, Aptar Beauty, and Aptar Closures. The company specializes in various drug dispensing solutions including nasal spray inhalers and elastomer components for injectable drugs, high-end fragrance pumps, and food dispensing closures. While Aptar’s portfolio includes lower-margin products such as shampoo and soap pumps and caps for sauce bottles, it has intentionally focused on growing the higher-margin healthcare business over the past decade, which now accounts for about two thirds of operating profits.

Narrow-moat Aptar’s fourth-quarter earnings were in line with our expectations. Revenue was $848 million, or 2% year-on-year core growth after adjusting for a 1% currency headwind. Adjusted EBITDA margin was 23%, or 1.6 percentage points better than the same period last year. We maintain our fair value estimate of $164 per share and view the stock as slightly undervalued.

Aptar is a global leader in dispensing technologies and operates under three business segments, Aptar Pharma, Aptar Beauty, and Aptar Closures. The company specializes in various drug dispensing solutions including nasal spray inhalers and elastomer components for injectable drugs, high-end fragrance pumps, and food dispensing closures. While Aptar’s portfolio includes lower-margin products such as shampoo and soap pumps and caps for sauce bottles, it has intentionally focused on growing the higher-margin healthcare business over the past decade, which now accounts for about two thirds of operating profits.

Narrow-moat Aptar's third-quarter earnings exceeded our expectations, driven by strong revenue growth and profit margins in the pharma segment. Revenue for the three months was $909 million, or 2% year-on-year growth, despite a difficult comparison period. Adjusted EBITDA margin was 22.9%, or 1.2 percentage points better than the same period last year. We raise our fair value to $164 per share from $147 as we increase our growth forecasts for the pharma segment.

Narrow-moat Aptar reported solid second-quarter earnings that were in line with expectations. Revenue was $910 million, or 3% year-on-year core growth, which excludes 1% of currency headwinds. Adjusted EBITDA margin was 21.2%, or 1 percentage point better than the same period last year. We maintain our fair value estimate of $147 and view shares as fairly valued.

Aptar is a global leader in dispensing technologies and operates under three business segments, Aptar Pharma, Aptar Beauty, and Aptar Closures. The company specializes in various drug dispensing solutions including nasal spray inhalers and elastomer components for injectable drugs, high-end fragrance pumps, and food dispensing closures. While Aptar’s portfolio includes lower-margin products such as shampoo and soap pumps and caps for sauce bottles, it has intentionally focused on growing the higher-margin healthcare business over the past decade, which now accounts for about two thirds of operating profits.

Narrow-moat Aptar reported solid first-quarter earnings that were in line with expectations. Revenue was $915 million, or 5% year-over-year core growth, which excludes 1% of currency headwinds. Adjusted EBITDA margin was 19.5%, a respectable 1.7 percentage points better than the same period last year. We maintain our fair value estimate of $147 and view shares as fairly valued.

Aptar's fourth-quarter earnings outperformed our expectations due to better profit margins. We have also reviewed our thoughts on the company, affirming our narrow moat rating thanks to the strong intangibles and switching costs we see in its Pharma segment. We have revised our fair value to $147 per share from $132 previously, too, to reflect our assumption of continued improvement in profitability.

Aptar is a global leader in dispensing technologies and operates under three business segments, Aptar Pharma, Aptar Beauty, and Aptar Closures. The company specializes in various drug dispensing solutions including nasal spray inhalers and elastomer components for injectable drugs, high-end fragrance pumps, and food dispensing closures. While Aptar’s portfolio includes lower-margin products such as shampoo and soap pumps and caps for sauce bottles, it has intentionally focused on growing the higher-margin healthcare business over the past decade, which now accounts for about two thirds of operating profits.

Narrow-moat Aptar's third-quarter performance continued the high note we have seen throughout 2023. We are maintaining our $132 fair value estimate following a strong quarter that reaffirmed our opinion on the intangible asset and switching costs that Aptar's pharma business enjoys. Adjusted EBITDA increased over 26% year over year, supported by cost savings efforts and operating leverage. Shares are currently undervalued, in our view.

Narrow-moat Aptar reported solid second-quarter results, continuing the positive trend in the previous quarter. The company sees a strong pipeline as over 85 medical products using Aptar’s proprietary delivery technology were launched in the first half of 2023. We are encouraged by Aptar’s presence among small to midsize pharma companies, highlighting the significant switching costs Aptar’s pharma business has developed. Therefore, we maintain our $132 fair value estimate for the company. Shares are currently trading undervalued.

Life science toolmakers that enable drug production operate attractive businesses for two major reasons that investors often find compelling. First, regulation of the drug manufacturing process creates highly durable switching costs for end users and long potential revenue streams for life science toolmakers. Second, life science firms often benefit from broad exposure to biopharmaceutical growth without taking on much product-specific risk.