It has been about a month since the last earnings report for Ametek (AME Quick QuoteAME - Free Report) . Shares have added about 2.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Ametek due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

AMETEK Beats Q4 Earnings Estimates

AMETEK reported fourth-quarter 2024 non-GAAP earnings of $1.87 per share, beating the Zacks Consensus Estimate by 1.6%. The figure increased 11.3% year over year.

AMETEK’s top line of $1.76 billion missed the Zacks Consensus Estimate of $1.81 billion by 2.47%. The figure increased 1.8% year over year.

Ametek’s Q4 2024 Details

EIG sales (68.8% of total revenues) in the fourth quarter were $1.21 billion, down 2% from the year-ago quarter’s reported figure. The EIG sales figure missed the Zacks Consensus Estimate of $1.23 billion.

The EIG segment, which is also the largest segment of Ametek, has experienced project delays as customers remained cautious at year-end, leading to temporary shipment delays. However, the company reported that these headwinds were temporary in nature.

In the fourth quarter, revenues from EMG (31.2% of total revenues) were $546.7 million, up 11% from the year-ago quarter. The figure missed the consensus mark of $571.2 million.

For the fourth quarter, operating income increased 5.4% year over year to $468.9 million and operating margin expanded by 90 basis points (bps) from the year-ago quarter.

EIG’s operating income in the quarter increased 8% to $386.6 million with operating income margins of 31.8%, reflecting an increase of 280 bps from the year-ago reported figure.

EMG's fourth-quarter operating income was $111.2 million and operating income margins were 20.3% in the quarter.

AME’s Balance Sheet & Cash Flow

As of Dec. 31, 2024, AME had cash and cash equivalents of $373.9 million compared with the previous quarter’s figure of $396.3 million.

As of Dec. 31, 2024, the long-term debt declined 19.2% to $1.43 billion from the previous quarter’s levels.

Operating cash flow in the fourth quarter was $550 million, free cash flow was $498.3 million and free cash flow to net income conversion was 129%.

AME Updates Guidance

For the first quarter of 2025, management expects sales to be roughly flat compared to the year-ago quarter’s reported figure. AMETEK expects adjusted earnings to be in the band of $1.67-$1.69 per share, suggesting an increase of 2-3% compared with the prior-year quarter. The consensus mark is pinned at $1.72 per share.

For 2025, AME expects overall sales to be up in the low single digits on a percentage basis compared to the 2024 reported level. The company released guidance for adjusted earnings per share in the range of $7.02-$7.18, suggesting an increase of 3-5%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Ametek has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Ametek has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.