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AMETEK, Inc. (AME - Free Report) has reported second-quarter 2022 adjusted earnings of $1.38 per share, which beat the Zacks Consensus Estimate by 6.9%. Further, the bottom line rose 20% on a year-over-year basis.
Net sales of $1.51 billion surpassed the Zacks Consensus Estimate of $1.46 billion. Further, the top line rose 9% 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 — is 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 (67.9% of total sales): AMETEK generated sales of $1.03 billion from the segment, reflecting growth of 10% from the year-ago quarter.
EMG (32.1% of sales): The segment generated $486.3 million of sales in the second quarter, which improved 7% on a year-over-year basis.
Operating Details
For the second quarter, operating expenses were $1.15 billion, up 7.5% year over year. The figure contracted 120 basis points (bps) from the year-ago quarter, as a percentage of net sales, to 75.9%.
Consequently, the operating margin was 24.1%, which expanded 130 bps from the year-ago figure.
The operating margin for EIG expanded 150 bps year over year to 25.8%. The same for EMG expanded 70 bps from the year-ago quarter to 25.6%.
Balance Sheet
As of Jun 30, 2022, cash and cash equivalents were $348.7 million, up from $340.3 million as of Mar 31, 2022.
Inventories amounted to $966.6 million at the end of the second quarter compared with $866.5 million at the end of the prior quarter.
Long-term debt was $2.15 billion in the reported quarter, down from $2.20 billion in the prior quarter.
Guidance
For third-quarter 2022, the company expects sales growth in the mid-single digits on a year-over-year basis. The Zacks Consensus Estimate for third-quarter sales is pegged at $1.53 billion.
AMETEK expects adjusted earnings of $1.36-$1.38 per share, suggesting year-over-year growth of 8-10%. The consensus mark for the same is pegged at $1.38.
For 2022, the company expects high-single digits of sales growth from that reported in 2021. The Zacks Consensus Estimate for 2022 sales is pegged at $6.04 billion.
The company has revised its guidance for adjusted earnings upward from $5.34-$5.44 per share to $5.46-$5.54 per share, suggesting an increase of 13-14% from that reported in 2021. The Zacks Consensus Estimate for earnings is pegged at $5.43 per share.
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AMETEK (AME) Q2 Earnings & Sales Beat Estimates, Rise Y/Y
AMETEK, Inc. (AME - Free Report) has reported second-quarter 2022 adjusted earnings of $1.38 per share, which beat the Zacks Consensus Estimate by 6.9%. Further, the bottom line rose 20% on a year-over-year basis.
Net sales of $1.51 billion surpassed the Zacks Consensus Estimate of $1.46 billion. Further, the top line rose 9% 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 — is 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 (67.9% of total sales): AMETEK generated sales of $1.03 billion from the segment, reflecting growth of 10% from the year-ago quarter.
EMG (32.1% of sales): The segment generated $486.3 million of sales in the second quarter, which improved 7% on a year-over-year basis.
Operating Details
For the second quarter, operating expenses were $1.15 billion, up 7.5% year over year. The figure contracted 120 basis points (bps) from the year-ago quarter, as a percentage of net sales, to 75.9%.
Consequently, the operating margin was 24.1%, which expanded 130 bps from the year-ago figure.
The operating margin for EIG expanded 150 bps year over year to 25.8%. The same for EMG expanded 70 bps from the year-ago quarter to 25.6%.
Balance Sheet
As of Jun 30, 2022, cash and cash equivalents were $348.7 million, up from $340.3 million as of Mar 31, 2022.
Inventories amounted to $966.6 million at the end of the second quarter compared with $866.5 million at the end of the prior quarter.
Long-term debt was $2.15 billion in the reported quarter, down from $2.20 billion in the prior quarter.
Guidance
For third-quarter 2022, the company expects sales growth in the mid-single digits on a year-over-year basis. The Zacks Consensus Estimate for third-quarter sales is pegged at $1.53 billion.
AMETEK expects adjusted earnings of $1.36-$1.38 per share, suggesting year-over-year growth of 8-10%. The consensus mark for the same is pegged at $1.38.
For 2022, the company expects high-single digits of sales growth from that reported in 2021. The Zacks Consensus Estimate for 2022 sales is pegged at $6.04 billion.
The company has revised its guidance for adjusted earnings upward from $5.34-$5.44 per share to $5.46-$5.54 per share, suggesting an increase of 13-14% from that reported in 2021. The Zacks Consensus Estimate for earnings is pegged at $5.43 per share.
Zacks Rank & Stocks to Consider
AMETEK currently carries a Zacks Rank #4 (Sell).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like MACOM Technology Solutions (MTSI - Free Report) , Keysight Technologies (KEYS - Free Report) and Asure Software (ASUR - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MACOM has lost 26% in the year-to-date period. The long-term earnings growth rate for MTSI is currently projected at 16.2%.
Keysight Technologies has lost 20.9% in the year-to-date period. KEYS’ long-term earnings growth rate is currently projected at 9.1%.
Asure Software has lost 29.6% in the year-to-date period. The long-term earnings growth rate for ASUR is currently projected at 14%.