Benzinga | Feb 17, 2021 10:07AM EST

Preview: AptarGroup's Earnings

On Thursday, February 18, AptarGroup (NYSE:ATR) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts covering AptarGroup modeled for quarterly EPS of $0.9 on revenue of $726.15 million. AptarGroup EPS in the same period a year ago totaled $0.8. Sales were $671.33 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 12.5%. Sales would be up 8.17% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.84 0.67 0.87 0.78EPS Actual 1 0.80 0.93 0.80Revenue Estimate 701.86 M 652.18 M 716.80 M 678.08 MRevenue Actual 759.15 M 699.30 M 721.55 M 671.33 M

Stock Performance

For a full 12 months, the return has risen by 24.35%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. AptarGroup is scheduled to hold the call at 09:00:00 ET and can be accessed here.