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What's in Store for AMETEK (AME) This Earnings Season?

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AMETEK, Inc. (AME - Free Report) is set to report first-quarter 2019 results on May 1.

The company topped the Zacks Consensus Estimate in the trailing four quarters, with an average positive earnings surprise of 5.56%.

Past-Quarter Performance

In the last reported quarter, AMETEK’s earnings of 86 cents per share delivered a positive earnings surprise of 2.38%. The figure grew 23% year over year.

Net Sales increased 17.5% year over year and 5.6% sequentially to $1.14 billion. Top-line growth was driven by robust organic growth and strong contribution from acquisitions.
   
Q1 Estimates

For the first quarter, AMETEK expects earnings in a range of $95 cents to $97 cents per share. The Zacks Consensus Estimate for earnings is pegged at 97 cents per share.

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

AMETEK, Inc. Price and EPS Surprise

 

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

Factors to Consider

Continued positive contributions from acquisitions and strong organic growth are likely to aid AMETEK’s segmental performance, consequently driving the top-line growth in the to-be-reported quarter.

Electronic Instruments Group (“EIG”) continues to benefit from the company’s strengthening process business. Moreover, its solid momentum across Material Analysis businesses remains a tailwind. Further, benefits from recent acquisitions of Forza Silicon, Tellular and Spectro Scientific are expected to aid the sales acceleration within this segment in the first quarter.

Electromechanical Group (“EMG”) is also likely to benefit from growing momentum of AMETEK’s aerospace and engineered materials business. Further, FMH Aerospace buyout is expected to continue driving the top-line growth within this segment in the quarter under review.

Apart from this, AMETEK’s growing investment in research & development, sales & marketing, manufacturing flexibility and engineering content are anticipated to contribute to its organic growth in the to-be-reported quarter.

Although imposition of tariff as a result of U.S.-China trade war remains a concern for the company, its flexible global supply chain is expected to counter this headwind. This bodes well for the company’s performance in the first quarter.

Additionally, the execution of AMETEK’s four core growth strategies of operational excellence, global market expansion, investments in product development and strategic acquisitions is likely to aid its first-quarter results.

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. 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 has a Zacks Rank #2 and an Earnings ESP of 0.00%, which makes the surprise prediction difficult.

Stocks That Warrant a Look

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

Square, Inc. (SQ - Free Report) an Earnings ESP of +5.50% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Agilent Technologies, Inc. (A - Free Report) has an Earnings ESP of +2.10% and a Zacks Rank #2.

Ameren Corporation (AEE - Free Report) has an Earnings ESP of +3.70% and a Zacks Rank #3.

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