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AMETEK (AME) Warms Up to Q3 Earnings: What's in the Offing?

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AMETEK, Inc. (AME - Free Report) is set to report third-quarter 2018 results on Nov 1.

The company topped the Zacks Consensus Estimate in the trailing four quarters, with an average of 6.42%.

In the last reported quarter, AMETEK delivered a positive earnings surprise of 6.41%. Earnings of 83 cents per share grew 28% year over year and 6.4% sequentially.

Net Sales increased 14.1% year over year and 3.4% sequentially to $1.21 billion. The top-line growth was driven by robust organic improvement and strong contribution from acquisitions. Organic sales grew 7%.

Notably, Shares of AMETEK have lost 8% on a year-to-date basis against the industry’s rally of 7.8%.

For the third quarter, AMETEK expects earnings in the range of 76-78 cents per diluted share, which reflects year-over-year growth of 15-18%. Sales are anticipated to increase in high-single digits on a year-over-year basis.

Let’s see how things are shaping up for this announcement.

Factors to Consider

AMETEK continues to reap the benefits from its four core growth strategies, namely operational excellence, global market expansion, investments in product development and strategic acquisitions.

Rising demand for the company’s engineered materials and thermal management systems remains a positive for organic sales growth, and should contribute to top-line growth in the to-be-reported quarter. Moreover, robust Ultra Precision Technologies continue to aid AMETEK’s business growth.

The company’s expanding product portfolio will continue to aid its performance in all geographical regions. AMETEK’s strategy to acquire businesses should continue to strengthen its footprint in aerospace, defence and space markets.

We believe that these endeavors will continue to expand AMETEK’s product offering, which is likely to boost top-line growth in the soon-to-be reported quarter. Additionally, regular investment in research and development, along with capital deployment in strategic acquisitions will continue to benefit the company’s product portfolio, which is likely to aid AMETEK’s performance in both the segments.

AMETEK, Inc. Price and EPS Surprise

 

AMETEK, Inc. Price and EPS Surprise | AMETEK, Inc. Quote

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

AMETEK currently has a Zacks Rank #2 and an Earnings ESP of +0.71%, which increases the odds of an earnings beat in the quarter to be reported

Other Stocks That Warrant a Look

Here are a few other stocks worth considering, as our model shows that these also have the right combination of elements to deliver an earnings beat in the upcoming releases.

Vishay Intertechnology, Inc.(VSH - Free Report) has an Earnings ESP of +0.62% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Generac Holdings Inc. (GNRC - Free Report) has an Earnings ESP of +3.19% and a Zacks Rank #1.

Advanced Energy Industries, Inc. (AEIS - Free Report) has an Earnings ESP of +2.70% and holds a Zacks Rank #3.

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