AptarGroup, Inc. (NYSE:ATR) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

AptarGroup, Inc. (NYSE:ATR) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues came in 2.2% below expectations, at US$910m. Statutory earnings per share were relatively better off, with a per-share profit of US$1.34 being roughly in line with analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for AptarGroup

Following the latest results, AptarGroup's six analysts are now forecasting revenues of US$3.64b in 2024. This would be a satisfactory 2.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 3.4% to US$4.99. In the lead-up to this report, the analysts had been modelling revenues of US$3.66b and earnings per share (EPS) of US$4.97 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$162, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on AptarGroup, with the most bullish analyst valuing it at US$170 and the most bearish at US$147 per share. This is a very narrow spread of estimates, implying either that AptarGroup is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 4.5% growth on an annualised basis. That is in line with its 5.2% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 7.2% annually. So it's pretty clear that AptarGroup is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for AptarGroup going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for AptarGroup that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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