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Ametek Q3 Earnings Beat: Will Strong Guidance Lift the Stock?
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Ametek (AME - Free Report) reported better-than-expected results for third-quarter 2024. AME reported adjusted earnings (non-GAAP) of $1.66 per share, which surpassed the Zacks Consensus Estimate by 2.5%. The figure increased 1.2% from the year-ago period.
AME’s third-quarter 2024 revenues were $1.71 billion, which increased 5% from the year-ago quarter. The figure surpassed the consensus mark of $1.69 billion. The top-line growth can be attributed to the strong performance across the Electromechanical Group (EMG) and Electronic Instruments Group (EIG) segments supported by a better-than-expected operational performance.
Stay up-to-date with all quarterly releases: See ZacksEarnings Calendar.
Ametek’s overall performance in the third quarter was steered by a strong portfolio combined with operational excellence and efforts in product development and acquisitions.
Looking forward, Ametek provided top-line guidance for the fourth quarter, which is above the Zacks Consensus Estimate. The company’s better-than-expected third-quarter performance, along with an impressive fourth-quarter outlook, is likely to attract investors. Shares of AME have risen 11.2% year to date, outperforming the Zacks Electronics - Testing Equipment industry’s decline of 0.5%.
EIG sales (66.5% of total revenue) in the third quarter were $1.135 billion, in line with the year-ago quarter’s reported figure and the Zacks Consensus Estimate.
In the third quarter, revenues from EMG (33.5% of total revenues) were $574 million, up 18% from the year-ago quarter. The figure surpassed the consensus mark of $555 million.
For the third quarter, operating income increased 2% year over year to $445.9 million and operating margin contracted by 90 basis points (bps) from the year-ago quarter.
EIG’s operating income in the quarter increased 1% to $339 million with operating income margins of 29.9%, reflecting an increase of 40 bps from the year-ago reported figure.
EMG's third-quarter operating income was $131.5 million, up 3% compared with the year-ago period, while operating income margins were 22.9% in the quarter.
AME’s Balance Sheet & Cash Flow
As of Sept. 30, 2024, AME had cash and cash equivalents of $396.3 million compared with the previous quarter’s figure of $396.6 million.
As of Sept. 30, 2024, the long-term debt declined 3.2% to $1.77 billion from the previous quarter’s levels.
Operating cash flow in the third quarter was $487.2 million, up 3% compared with the prior year, with free cash flow to net income conversion of 135%.
AME Updates Guidance
For the fourth quarter, management expects sales to be up in the mid-single digits percentage basis from the year-ago quarter’s reported figure. The Zacks Consensus Estimate is pegged at $1.78 billion, reflecting a year-over-year increase of 3.1%.
AMETEK expects adjusted earnings to be in the band of $1.81-$1.86 per share, suggesting an increase of 8-11% compared with the prior-year quarter. The consensus mark is pinned at $1.82 per share.
For 2024, AME still expects sales growth between 5% and 7% from the 2023 reported level. The Zacks Consensus Estimate is pegged at $6.95 billion.
The company increased its guidance for adjusted earnings per share from $6.70-$6.80 to $6.77-$6.82, suggesting growth of 6-7% from the 2023 reported level. The Zacks Consensus Estimate for earnings is pegged at $6.76 per share, indicating a year-over-year increase of 6%.
Zacks Rank & Stocks to Consider
Currently, AME carries a Zacks Rank #4 (Sell) at present.
Arista Networks (ANET - Free Report) , Autodesk (ADSK - Free Report) and Lyft (LYFT - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector.
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Ametek Q3 Earnings Beat: Will Strong Guidance Lift the Stock?
Ametek (AME - Free Report) reported better-than-expected results for third-quarter 2024. AME reported adjusted earnings (non-GAAP) of $1.66 per share, which surpassed the Zacks Consensus Estimate by 2.5%. The figure increased 1.2% from the year-ago period.
AME’s third-quarter 2024 revenues were $1.71 billion, which increased 5% from the year-ago quarter. The figure surpassed the consensus mark of $1.69 billion. The top-line growth can be attributed to the strong performance across the Electromechanical Group (EMG) and Electronic Instruments Group (EIG) segments supported by a better-than-expected operational performance.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Ametek’s overall performance in the third quarter was steered by a strong portfolio combined with operational excellence and efforts in product development and acquisitions.
Looking forward, Ametek provided top-line guidance for the fourth quarter, which is above the Zacks Consensus Estimate. The company’s better-than-expected third-quarter performance, along with an impressive fourth-quarter outlook, is likely to attract investors. Shares of AME have risen 11.2% year to date, outperforming the Zacks Electronics - Testing Equipment industry’s decline of 0.5%.
AMETEK, Inc. Price, Consensus and EPS Surprise
AMETEK, Inc. price-consensus-eps-surprise-chart | AMETEK, Inc. Quote
Ametek’s Q3 2024 Details
EIG sales (66.5% of total revenue) in the third quarter were $1.135 billion, in line with the year-ago quarter’s reported figure and the Zacks Consensus Estimate.
In the third quarter, revenues from EMG (33.5% of total revenues) were $574 million, up 18% from the year-ago quarter. The figure surpassed the consensus mark of $555 million.
For the third quarter, operating income increased 2% year over year to $445.9 million and operating margin contracted by 90 basis points (bps) from the year-ago quarter.
EIG’s operating income in the quarter increased 1% to $339 million with operating income margins of 29.9%, reflecting an increase of 40 bps from the year-ago reported figure.
EMG's third-quarter operating income was $131.5 million, up 3% compared with the year-ago period, while operating income margins were 22.9% in the quarter.
AME’s Balance Sheet & Cash Flow
As of Sept. 30, 2024, AME had cash and cash equivalents of $396.3 million compared with the previous quarter’s figure of $396.6 million.
As of Sept. 30, 2024, the long-term debt declined 3.2% to $1.77 billion from the previous quarter’s levels.
Operating cash flow in the third quarter was $487.2 million, up 3% compared with the prior year, with free cash flow to net income conversion of 135%.
AME Updates Guidance
For the fourth quarter, management expects sales to be up in the mid-single digits percentage basis from the year-ago quarter’s reported figure. The Zacks Consensus Estimate is pegged at $1.78 billion, reflecting a year-over-year increase of 3.1%.
AMETEK expects adjusted earnings to be in the band of $1.81-$1.86 per share, suggesting an increase of 8-11% compared with the prior-year quarter. The consensus mark is pinned at $1.82 per share.
For 2024, AME still expects sales growth between 5% and 7% from the 2023 reported level. The Zacks Consensus Estimate is pegged at $6.95 billion.
The company increased its guidance for adjusted earnings per share from $6.70-$6.80 to $6.77-$6.82, suggesting growth of 6-7% from the 2023 reported level. The Zacks Consensus Estimate for earnings is pegged at $6.76 per share, indicating a year-over-year increase of 6%.
Zacks Rank & Stocks to Consider
Currently, AME carries a Zacks Rank #4 (Sell) at present.
Arista Networks (ANET - Free Report) , Autodesk (ADSK - Free Report) and Lyft (LYFT - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector.
Arista Networks, Autodesk and Lyft each sports a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks’ shares have gained 64.1% year to date. ANET is set to report its third-quarter 2024 results on Nov. 7.
Autodesk shares have risen 16.6% year to date. ADSK is set to report its third-quarter fiscal 2025 results on Nov. 19.
LYFT shares have lost 13.4% year to date. LYFT is set to report its third-quarter 2024 results on Nov. 6.