AptarGroup (NYSE: ATR) reported Q1 EPS of $0.93, $0.06 better than the analyst estimate of $0.87. Revenue for the quarter came in at $721.55 million versus the consensus estimate of $716.8 million.

“I am extremely proud of our dedicated employees around the world who have risen to this unprecedented challenge to ensure the supply of our solutions to the critical infrastructure industries of food, healthcare and consumer products,” explained Stephan Tanda, President and CEO. Aptar provides dispensing and packaging solutions for food and beverage products including closures for infant nutrition, condiments and many other at-home meal staples. Aptar’s drug delivery and active packaging solutions include valves for pulmonary metered dose inhalers for critical asthma medication, nasal spray pumps for allergy treatments and certain life-saving medications, stoppers and needle shields for many injectable medications and vaccines, and active packaging solutions that protect diabetes test strips and other critical medication. In addition, Aptar provides a range of dispensing solutions for hand sanitizers, antibacterial soaps and lotions, and valves and closures for disinfectants and cleaners.

GUIDANCE:

Factors that could impact Aptar’s second quarter results, include among other things, the duration and severity of the COVID-19 pandemic, the pace and scope of reopening in regions that are currently under government confinement orders, the speed at which beauty and other retail stores open, the willingness of consumers to participate in those shopping channels, the rate at which airline travel will resume and the general level of on-the-go consumption particularly with certain beverage products.

“Although there is significant near-term uncertainty, we expect the coming quarter to mark the worst of the expected COVID-19 impacts on our business and we anticipate a gradual recovery in the second half of the year. Our broad portfolio of dispensing, drug delivery and active packaging solutions, combined with our growing services platforms and new partnerships, are the core strengths which have enabled, and will continue to enable, us to grow over the long-term. Also, our balance sheet remains in excellent condition and we will continue to diligently manage our costs and capacities to align with the changing market conditions,” stated Tanda.

Aptar expects the near-term effects related to the COVID-19 pandemic to continue through the second quarter and anticipates that they will be more pronounced than the Company experienced in the first quarter. The results of Aptar’s Beauty + Home segment are expected to be significantly impacted by continued softness across each end market primarily related to the effects of COVID-19. In addition, the Food + Beverage segment, which had very strong growth in the prior year second quarter, is expected to see continued softness in the on-the-go beverage market primarily related to COVID-19 and the impact from passing on lower resin costs. Aptar’s Pharma segment is facing difficult comparisons compared to the prior year’s exceptional growth, especially within its prescription division. Aptar’s second quarter results are expected to include expenses of approximately $3.6 million (pretax) related to the Thank You Award being given to employees.

Aptar expects earnings per share for the second quarter of 2020, excluding any restructuring expenses and acquisition-related costs, to be in the range of $0.58 to $0.73 and this guidance is based on an effective tax rate range of 31% to 33%.

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