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AMETEK Q1 Earnings Surpass Expectations, Revenues Decline Y/Y

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AMETEK, Inc. (AME - Free Report) reported first-quarter 2025 non-GAAP earnings of $1.75 per share, beating the Zacks Consensus Estimate by 3.6%. The figure increased 7% year over year.

AMETEK’s top line of $1.73 billion missed the Zacks Consensus Estimate by 0.51%. The figure decreased 0.2% year over year.

The company experienced declining sales in its largest EIG segment, partially offset by the year-over-year improvement in the EMG segment. The stock gained 3.8% in the past year, outperforming the Zacks Electronics - Testing Equipment industry’s decline of 3.5%.

AMETEK, Inc. Price, Consensus and EPS Surprise

AMETEK, Inc. Price, Consensus and EPS Surprise

AMETEK, Inc. price-consensus-eps-surprise-chart | AMETEK, Inc. Quote

Ametek’s Q1 2025 Details

EIG sales (65.9% of total revenue) in the first quarter were $1.14 billion, down 1% from the year-ago quarter’s reported figure. The figure missed the Zacks Consensus Estimate of $1.15 billion.

In the first quarter, revenues from EMG (34.1% of total revenues) were $588.3 million, up 2% from the year-ago quarter. The figure beat the consensus mark of $580 million.

For the first quarter, operating income increased 2% year over year to $454.8 million and operating margin expanded by 60 basis points (bps) from the year-ago quarter.

EIG’s operating income in the quarter increased 0.3% to $354.1 million with operating income margins of 31%, reflecting an increase of 50 bps from the year-ago reported figure.

EMG's first-quarter operating income was $128.7 million and operating income margins were 21.9% in the quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

AME’s Balance Sheet & Cash Flow

As of March 31, 2025, AME had cash and cash equivalents of $399 million compared with the previous quarter’s $373.9 million.

As of March 31, 2025, AME’s long-term debt was $1.46 billion from the previous quarter’s levels.

Operating cash flow in the first quarter was $417.5 million, free cash flow was $394.5 million and free cash flow to net income conversion was 112%.

AME Updates Guidance

For 2025, AME still expects overall sales to be up in low single digits on a percentage basis compared to the 2024 reported level. The Zacks Consensus Estimate is pegged at $7.17 billion, indicating a year-over-year increase of 3.4%.

The company reiterated its guidance for adjusted earnings per share in the range of $7.02-$7.18, suggesting an increase of 3-5%. The Zacks Consensus Estimate for earnings is pegged at $7.13 per share, indicating a year-over-year increase of 4.4%.

Zacks Rank and Stocks to Consider

Currently, AME carries a Zacks Rank #3 (Hold).

Affirm (AFRM - Free Report) , Super Micro Computer (SMCI - Free Report) and Paycom Software (PAYC - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. AFRM, SMCI and PAYC sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

AFRM shares have gained 4% in the past year. The Zacks Consensus Estimate for AFRM’s 2025 is pegged at a loss of 6 cents per share, narrowed by 7 cents over the past 60 days, suggesting growth of 96.7% from the year-ago quarter’s reported figure.

SMCI shares have plunged 56.4% in the past year. The Zacks Consensus Estimate for SMCI’s fiscal 2025 earnings has been revised downward to $2.52 in the past seven days, suggesting year-over-year growth of 14%.

PAYC shares have gained 6% over the past year. The Zacks Consensus Estimate for PAYC’s 2025 earnings is pegged at $8.72 per share, implying a rise of 6.21% from the year-ago quarter’s levels.

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