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AMETEK, Inc. (AME - Free Report) reported third-quarter 2022 adjusted earnings of $1.45 per share, beating the Zacks Consensus Estimate by 5.8%. The bottom line rose 15% on a year-over-year basis.
Net sales of $1.55 billion came ahead of the Zacks Consensus Estimate of $1.52 billion. Further, the top line rose 8% 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, including operational excellence, global market expansion, investments in product development and acquisitions, are expected to continue aiding financial growth in the near and the long term. The AMETEK Growth Model is likely to continue driving AME’s business performance.
EIG (67.9% of total sales): AMETEK generated sales of $1.05 billion from the segment, reflecting growth of 7% from the year-ago quarter’s level.
EMG (32.1% of sales): The segment generated $497.7 million of sales in the third quarter, which improved 7% on a year-over-year basis.
Operating Details
For the third quarter, operating expenses were $1.2 billion, up 5.8% year over year. The figure contracted 140 basis points (bps) from the year-ago quarter’s level, as a percentage of net sales, to 75.2%.
Consequently, the operating margin was 24.8%, which expanded 140 bps from the year-ago quarter’s figure.
The operating margin for EIG expanded 90 bps year over year to 25.9%. The same for EMG expanded 240 bps from the year-ago quarter’s level to 27.4%.
Balance Sheet
As of Sep 30, 2022, cash and cash equivalents were $309.9 million, down from $348.7 million as of Jun 30, 2022.
Inventories amounted to $1.02 billion at the end of the third quarter compared with $966.6 million at the end of the prior quarter.
Long-term debt was $2.08 billion in the reported quarter, down from $2.15 billion in the prior quarter.
Guidance
For fourth-quarter 2022, management expects sales growth in mid-single digits from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for fourth-quarter sales is pegged at $1.55 billion.
AMETEK expects adjusted earnings of $1.45-$1.47 per share, suggesting growth of 6-7% from the year-ago quarter’s reported number. The consensus mark for the same is pegged at $1.42.
For 2022, AME expects 10% sales growth from the 2021 level. The Zacks Consensus Estimate for 2022 sales is pegged at $6.04 billion. Previously, management had expected sales growth in high-single digits from the 2021 reported figure.
Management lifted its guidance for adjusted earnings from $5.46-$5.54 per share to $5.61-$5.63, suggesting a 16% increase from the 2021 reported level. The Zacks Consensus Estimate for earnings is pegged at $5.51 per share.
US Foods is set to report third-quarter 2022 results on Nov 10. The Zacks Consensus Estimate for USFD’s earnings is pegged at 59 cents per share, suggesting an increase of 22.9% from the prior-year period’s reported figure. USFD has lost 14.6% in the year-to-date period. Its long-term earnings growth rate is currently projected at 20%.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 9. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure. TTD has lost 41.4% in the year-to-date period. TTD’s long-term earnings growth rate is currently projected at 24%.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting an increase of 22.2% from the prior-year quarter’s reported figure. TME has lost 46.5% in the year-to-date period. TME’s long-term earnings growth rate is currently projected at 17.9%.
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AMETEK (AME) Q3 Earnings & Sales Beat Estimates, Rise Y/Y
AMETEK, Inc. (AME - Free Report) reported third-quarter 2022 adjusted earnings of $1.45 per share, beating the Zacks Consensus Estimate by 5.8%. The bottom line rose 15% on a year-over-year basis.
Net sales of $1.55 billion came ahead of the Zacks Consensus Estimate of $1.52 billion. Further, the top line rose 8% 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, including operational excellence, global market expansion, investments in product development and acquisitions, are expected to continue aiding financial growth in the near and the long term. The AMETEK Growth Model is likely to continue driving AME’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 $1.05 billion from the segment, reflecting growth of 7% from the year-ago quarter’s level.
EMG (32.1% of sales): The segment generated $497.7 million of sales in the third quarter, which improved 7% on a year-over-year basis.
Operating Details
For the third quarter, operating expenses were $1.2 billion, up 5.8% year over year. The figure contracted 140 basis points (bps) from the year-ago quarter’s level, as a percentage of net sales, to 75.2%.
Consequently, the operating margin was 24.8%, which expanded 140 bps from the year-ago quarter’s figure.
The operating margin for EIG expanded 90 bps year over year to 25.9%. The same for EMG expanded 240 bps from the year-ago quarter’s level to 27.4%.
Balance Sheet
As of Sep 30, 2022, cash and cash equivalents were $309.9 million, down from $348.7 million as of Jun 30, 2022.
Inventories amounted to $1.02 billion at the end of the third quarter compared with $966.6 million at the end of the prior quarter.
Long-term debt was $2.08 billion in the reported quarter, down from $2.15 billion in the prior quarter.
Guidance
For fourth-quarter 2022, management expects sales growth in mid-single digits from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for fourth-quarter sales is pegged at $1.55 billion.
AMETEK expects adjusted earnings of $1.45-$1.47 per share, suggesting growth of 6-7% from the year-ago quarter’s reported number. The consensus mark for the same is pegged at $1.42.
For 2022, AME expects 10% sales growth from the 2021 level. The Zacks Consensus Estimate for 2022 sales is pegged at $6.04 billion. Previously, management had expected sales growth in high-single digits from the 2021 reported figure.
Management lifted its guidance for adjusted earnings from $5.46-$5.54 per share to $5.61-$5.63, suggesting a 16% increase from the 2021 reported level. The Zacks Consensus Estimate for earnings is pegged at $5.51 per share.
Zacks Rank & Stocks to Consider
AMETEK currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like US Foods (USFD - Free Report) , The Trade Desk (TTD - Free Report) and Tencent Music Entertainment Group (TME - 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.
US Foods is set to report third-quarter 2022 results on Nov 10. The Zacks Consensus Estimate for USFD’s earnings is pegged at 59 cents per share, suggesting an increase of 22.9% from the prior-year period’s reported figure. USFD has lost 14.6% in the year-to-date period. Its long-term earnings growth rate is currently projected at 20%.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 9. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure. TTD has lost 41.4% in the year-to-date period. TTD’s long-term earnings growth rate is currently projected at 24%.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting an increase of 22.2% from the prior-year quarter’s reported figure. TME has lost 46.5% in the year-to-date period. TME’s long-term earnings growth rate is currently projected at 17.9%.