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AMETEK, Inc. (AME - Free Report) has reported fourth-quarter 2021 adjusted earnings of $1.37 per share, which beat the Zacks Consensus Estimate by 4.6%. Further, the bottom line rose 27% on a year-over-year basis.
Net sales of $1.50 billion surpassed the Zacks Consensus Estimate of $1.47 billion. Notably, the top line rose 25% year over year.
Top-line growth was driven by strong performances of the Electronic Instruments Group (“EIG”) and Electromechanical Group (“EMG”) segments in the reported quarter.
AMETEK’s proper execution of the four core growth strategies — operational excellence, global market expansion, investments in product development and acquisitions — are expected to continue to aid financial growth in the near and long terms. The AMETEK Growth Model is likely to continue driving the company’s business performance.
EIG (70.3% of total sales): AMETEK generated sales of $1.06 billion from the segment, reflecting growth of 29% from the year-ago quarter. This can primarily be attributed to organic growth and positive contributions from acquisitions.
EMG (29.7% of sales): The segment generated $446.7 million of sales in the fourth quarter, which improved 18% on a year-over-year basis. The company’s solid operational execution and strong organic growth drove sales growth in the segment.
Operating Details
For the fourth quarter, operating expenses were $1.14 billion, up 26.8% year over year. The figure expanded 80 basis points (bps) from the year-ago quarter as a percentage of net sales to 75.9%.
Consequently, the operating margin was 24%, which contracted 90 bps from the year-ago figure.
The operating margin for EIG contracted 240 bps year over year to 26.4%, whereas the same for EMG expanded 260 bps from the year-ago quarter to 23.6%.
Balance Sheet
As of Dec 31, 2021, cash and cash equivalents were $346.8 million, down from $358.7 million as of Sep 30, 2021.
Inventories amounted to $769.2 million at the end of the fourth quarter compared with $738.7 million at the end of the prior quarter.
Long-term debt was $2.23 billion in the reported quarter, down from $2.24 billion in the prior quarter.
Guidance
For first-quarter 2022, the company expects sales growth of 20% on a year-over-year basis. The Zacks Consensus Estimate for first-quarter sales is pegged at $1.45 billion.
AMETEK expects adjusted earnings of $1.24-$1.28 per share, suggesting year-over-year growth of 16-20%. The consensus mark for the same is pegged at $1.28.
For 2022, the company expects year-over-year sales growth of 10%. The Zacks Consensus Estimate for 2021 sales is pegged at $5.51 billion.
The company expects adjusted earnings of $5.30-$5.42 per share, suggesting an increase of 9-12% from that reported in 2021. The Zacks Consensus Estimate for earnings is projected at $4.79 per share.
Bruker is scheduled to release fourth-quarter 2021 results on Feb 15. It has gained 19.6% over a year. The long-term earnings growth rate for BRKR is currently projected at 20.6%.
Intuit is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 43.2% over a year. The long-term earnings growth rate for INTU is currently projected at 15.7%.
Zscaler is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 20.5% over a year. The long-term earnings growth rate for ZS is currently projected at 37.1%.
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AMETEK (AME) Q4 Earnings & Sales Beat Estimates, Rise Y/Y
AMETEK, Inc. (AME - Free Report) has reported fourth-quarter 2021 adjusted earnings of $1.37 per share, which beat the Zacks Consensus Estimate by 4.6%. Further, the bottom line rose 27% on a year-over-year basis.
Net sales of $1.50 billion surpassed the Zacks Consensus Estimate of $1.47 billion. Notably, the top line rose 25% year over year.
Top-line growth was driven by strong performances of the Electronic Instruments Group (“EIG”) and Electromechanical Group (“EMG”) segments in the reported quarter.
AMETEK’s proper execution of the four core growth strategies — operational excellence, global market expansion, investments in product development and acquisitions — are expected to continue to aid financial growth in the near and long terms. The AMETEK Growth Model is likely to continue driving the company’s business performance.
AMETEK, Inc. Price, Consensus and EPS Surprise
AMETEK, Inc. price-consensus-eps-surprise-chart | AMETEK, Inc. Quote
Segments in Detail
EIG (70.3% of total sales): AMETEK generated sales of $1.06 billion from the segment, reflecting growth of 29% from the year-ago quarter. This can primarily be attributed to organic growth and positive contributions from acquisitions.
EMG (29.7% of sales): The segment generated $446.7 million of sales in the fourth quarter, which improved 18% on a year-over-year basis. The company’s solid operational execution and strong organic growth drove sales growth in the segment.
Operating Details
For the fourth quarter, operating expenses were $1.14 billion, up 26.8% year over year. The figure expanded 80 basis points (bps) from the year-ago quarter as a percentage of net sales to 75.9%.
Consequently, the operating margin was 24%, which contracted 90 bps from the year-ago figure.
The operating margin for EIG contracted 240 bps year over year to 26.4%, whereas the same for EMG expanded 260 bps from the year-ago quarter to 23.6%.
Balance Sheet
As of Dec 31, 2021, cash and cash equivalents were $346.8 million, down from $358.7 million as of Sep 30, 2021.
Inventories amounted to $769.2 million at the end of the fourth quarter compared with $738.7 million at the end of the prior quarter.
Long-term debt was $2.23 billion in the reported quarter, down from $2.24 billion in the prior quarter.
Guidance
For first-quarter 2022, the company expects sales growth of 20% on a year-over-year basis. The Zacks Consensus Estimate for first-quarter sales is pegged at $1.45 billion.
AMETEK expects adjusted earnings of $1.24-$1.28 per share, suggesting year-over-year growth of 16-20%. The consensus mark for the same is pegged at $1.28.
For 2022, the company expects year-over-year sales growth of 10%. The Zacks Consensus Estimate for 2021 sales is pegged at $5.51 billion.
The company expects adjusted earnings of $5.30-$5.42 per share, suggesting an increase of 9-12% from that reported in 2021. The Zacks Consensus Estimate for earnings is projected at $4.79 per share.
Zacks Rank & Other Stocks to Consider
AMETEK currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Bruker (BRKR - Free Report) , Intuit (INTU - Free Report) and Zscaler (ZS - Free Report) , each presently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bruker is scheduled to release fourth-quarter 2021 results on Feb 15. It has gained 19.6% over a year. The long-term earnings growth rate for BRKR is currently projected at 20.6%.
Intuit is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 43.2% over a year. The long-term earnings growth rate for INTU is currently projected at 15.7%.
Zscaler is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 20.5% over a year. The long-term earnings growth rate for ZS is currently projected at 37.1%.