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AMETEK (AME) to Report Q1 Earnings: A Beat in the Cards?

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We expect AMETEK Inc. (AME - Free Report) to beat expectations when it reports first-quarter 2017 results on May 2.

Why a Likely Positive Surprise?

Our proven model shows that AMETEK is likely to beat earnings because it has the right combination of two key ingredients.

Zacks ESP: AMETEK’s Earnings ESP is +1.79%. This is because the company’s Most Accurate estimate is 57 cents while the Zacks Consensus Estimate is pegged lower at 56 cents. A favorable ESP serves as a meaningful and leading indicator of a likely positive surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: AMETEK currently carries a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) has a significantly higher chance of beating earnings estimates. Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.

The combination of AMETEK’s Zacks Rank #2 and +1.79% ESP makes us reasonably optimistic of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

What is Driving Better-than-Expected Earnings?

We note that AMETEK has mixed record of earnings surprises in the trailing four quarters, with an average surprise of 0.46%. Moreover, the stock has outperformed the broader S&P 500 on a year-to-date basis. While the S&P 500 gained 6.7%, the stock returned 17.5%.



We expect the momentum in the share price to continue due to stabilizing market conditions (in oil & gas, metals as per management) and accretive acquisitions that are expanding the company’s footprint in fast growing markets.  
 

AMTEK, Inc. Price and EPS Surprise

 

AMTEK, Inc. Price and EPS Surprise | AMTEK, Inc. Quote

The acquisition of Rauland-Borg expands the company’s forte in healthcare market, which will boost top-line growth.

Geographically, improving U.S. and stabilizing China presents significant growth opportunity. Moreover, solid product portfolio, stringent cost control and improving operational efficiency are anticipated to drive overall results.

For the first quarter, AMETEK expects revenues to be roughly flat, with organic sales down low-single digits. Earnings are expected to be in a range of 55–57 cents per share.

Other Stocks to Consider

Here are some companies you may consider as our proven model shows they too have the right combination of elements to post an earnings beat this quarter:

Avid Technology Inc. with an Earnings ESP of +160.00% and a Zacks Rank #2.

DragonWave , with an Earnings ESP of +8.82%, carrying a Zacks Rank #2.

Impinj (PI - Free Report) , with an Earnings ESP of +50%, has a Zacks Rank #2.

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