ATR changes
Pick any two versions below to diff them.
- Price
- $124.51 → $143.08(+14.9%)
- Discount category
- Well below intrinsic value → Below intrinsic value
- Next earnings
- Oct 29, 2026 → Jan 29, 2027
- Next earnings is estimate
- No → Yes
- Thesis
- The market prices Aptar for lower margins and for the fall in emergency medicine sales in Pharma. In removed: Q2 added: Q3 2026, the adjusted EBITDA margin fell to removed: 20.7% added: 21.3% from removed: 22.6% added: 23.2% a year earlier, and added: adjusted EPS fell to $1.52 from $1.62. Core sales grew 5%, but Pharma core sales grew only removed: 1%. Pharma's margin fell 180 basis points added: 1% because of removed: product mix and destocking in emergency medicine, and removed: Beauty and Closures margins added: Pharma's margin fell removed: about 200 added: 80 basis removed: points each. Adjusted EPS fell to $1.42 from $1.68. added: points. For the gap to close, three things must be true. The emergency medicine destocking must end by Q4 2026, as Aptar expects, so that Pharma returns to growth with its high margins. Closures must finish the start-up of its new production lines, and Beauty must recover volume. The new CEO must keep the strategy and costs on track. The Q3 2026 report removed: on October 29, 2026, added: passed the first test, with removed: guidance of $1.45 to $1.53 adjusted removed: EPS, gives added: EPS at the removed: first test. added: high end of guidance and growth in all three segments. The Q4 2026 removed: report added: report, expected in added: late January or early removed: 2027 added: February 2027, with guidance of $1.39 to $1.47 adjusted EPS, shows whether Pharma growth returns. If these checks pass, the gap can close over the next three to five quarters. The main reason it may not close is a longer slowdown in Pharma, because Pharma is most of the profit.
- Risks
- Pharma earns most of the profit. removed: A longer added: Emergency medicine destocking added: cut Pharma core sales growth to 1% in removed: emergency medicine, added: Q3 2026, from 8% without it. A longer destocking, or lower demand for nasal sprays and injectables, can keep margins low. Aptar is in lawsuits with ARS Pharmaceuticals over trade secrets, contracts and US antitrust law, and in patent cases from Nemera in Germany and France about some eye care products. These cases add costs and can limit sales. Beauty and Closures depend on consumer demand and resin costs. removed: Lower volumes or late pass added: Pass through of removed: resin added: higher input costs removed: reduced Beauty's added: lowered the Closures margin by removed: 190 added: 60 basis points in removed: Q2 2026. added: Q3 2026, and Beauty still has problems in its North American operations. Aptar has a new CEO and an interim Chief Accounting Officer in 2026. Changes in leadership can slow decisions. Russia also put its local subsidiary under external administration in September added: 2026, and Aptar recorded a loss of $58.0 million when it deconsolidated it in Q3 2026.
- Balance sheet
- Cash: removed: $190M added: $204M Debt: $1.4B Net debt: $1.2B Debt due within 12 months: removed: $249M added: $351M Aptar has moderate debt. At removed: June added: September 30, 2026, short-term obligations were removed: $249.2 added: $350.7 million and long-term obligations were removed: $1.12 added: $1.02 billion, so total debt was removed: $1.37 added: $1.38 billion. Cash and equivalents were removed: $190.4 added: $204.2 million, down from $402.4 million at December 31, removed: 2025, after Aptar repaid $155.9 added: 2025. About $30 million of removed: long-term debt in added: cash left the removed: first half of added: balance sheet with the Russian subsidiary in Q3 2026. Adjusted EBITDA was removed: $401.5 added: $618.7 million in the first removed: half added: nine months of removed: 2026. Aptar paid dividends of $0.48 per share each quarter added: 2026, and added: free cash flow was $197.8 million. Aptar bought back removed: $50 added: $30 million of shares in removed: Q2 added: Q3 2026, and it returned $272 million to shareholders in the first nine months of 2026. added: The board raised the quarterly dividend to $0.50 per share from $0.48 in October 2026. As of removed: Jun added: Sep 30, 2026.
- Checkpoints
- Oct 29, 2026: Q3 2026 earnings: margins and Pharma. removed: Pending. added: Passed. Watch: Adjusted EPS within or above $1.45 to $1.53 and growth in all three segments pass; adjusted EPS below the range or a lower Pharma margin fail. removed: Feb 5, added: Outcome: Adjusted EPS was $1.52 and all three segments grew, but the Pharma margin fell 80 basis points to 36.4%, which stays above Aptar's long-term target. Jan 29, 2027 (estimate): Q4 2026 earnings: end of destocking. Pending. Watch: Pharma core sales growth as the emergency medicine destocking ends and a higher adjusted EBITDA margin pass; more destocking or a lower margin fail.
- Recent events
- added: Oct 29, 2026: Aptar reported Q3 2026 results. Sales rose 6% to $1.02 billion, and core sales rose 5%. Adjusted EPS was $1.52, at the high end of guidance, down from $1.62. Reported EPS was $0.51, after a loss of $60.4 million after tax, or $0.94 per share, on the deconsolidation of the Russian subsidiary. The adjusted EBITDA margin was 21.3%. Aptar guided to Q4 2026 adjusted EPS of $1.39 to $1.47, and the board raised the quarterly dividend to $0.50 from $0.48 per share. Sep 21, 2026: A decree of the President of the Russian Federation put Aptar's Russian subsidiary, Aptar Vladimir, under temporary external administration. Aptar said that the subsidiary was less than 0.6% of net sales and operating income in 2025, and that it is assessing its options. Sep 10, 2026: Aditya J. Gandhi resigned as Chief Accounting Officer on September 11, 2026, to take another job. Daniel Ackerman, who held the role until June 2026, became interim Chief Accounting Officer. Sep 1, 2026: Gael Touya became President and CEO and joined the board. He succeeded Stephan B. Tanda, who retired. Jul 30, 2026: Aptar reported Q2 2026 results. Sales rose 6% to $1.03 billion, and core sales rose 1%. Adjusted EPS was $1.42, down from $1.68. The adjusted EBITDA margin was 20.7%. Aptar guided to Q3 2026 adjusted EPS of $1.45 to $1.53. It returned $81 million to shareholders in the quarter.