The effective dispensing of fluid products is often a complex problem best left to specialists. A Crystal Lake, Illinois, firm ranks among the recognized experts in the field.
AptarGroup (NYSE: ATR) supplies a broad range of dispensing systems to the fragrance/cosmetic, personal care, pharmaceutical, household and food/beverage markets. Offerings include spray pumps, dispensing closures, nasal pumps, aerosol valves and lotion pumps. The firm operates on five continents and sells most of its products through an in-house sales network.
Investors were pleased last week when the company reported Q3 EPS of 53 cents and revenues of $485.7 million. The
Street had been looking for 51 cents and $461.0 million. The EPS total was a record for the firm. The Pharma and Beauty & Home segments were said to be particularly strong contributors. Management also guided Q4 EPS to 43-46 cents, versus Street consensus of 45 cents. The Board of Directors declared a quarterly dividend of 13 cents per share. The stock popped on the news and then passed into the initial stage of a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.
Altogether, brokers recommend the shares with one "strong buy," one "buy," seven "holds" and a "sell." Analysts expect a 14% growth rate through the next year. The ATR P/E ratio (21.94), Price to Book ratio (2.62), Sales Growth rate (20.00%), EPS Growth rate (32.50%) and Return on Investment (10.76%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $26.88 and $42.47. A stop-loss of $35.70 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.










