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

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AMETEK, Inc. (AME - Free Report) is set to report second-quarter 2019 results on Jul 30.

The company topped the Zacks Consensus Estimate in the trailing four quarters, with the average being 4.25%.

First-Quarter Performance

In the last reported quarter, AMETEK delivered a positive earnings surprise of 3.09%. Earnings of $1 per share grew 15% year over year.

Also, net sales increased 10.2% year over year and 16% sequentially to $1.29 billion. The top-line improvement was driven by robust organic growth and solid contribution from acquisitions.

AMETEK, Inc. Price and EPS Surprise

 

AMETEK, Inc. Price and EPS Surprise

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

Second-Quarter Estimates

For the second quarter, AMETEK expects earnings in the range of $1.00-$1.02 per share, indicating year-over-year growth of 9-11%. The Zacks Consensus Estimate for earnings is pegged at $1.03.

Let’s see how things are shaping up for the to-be-reported quarter.

Factors to Consider

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

Electronic Instruments Group has been benefiting from the company’s strengthening process business, which is a positive for the quarter to be reported. Moreover, its solid momentum across Material Analysis businesses is a tailwind. Benefits from the company’s recent acquisitions are expected to aid in sales acceleration within this segment in the second quarter.

Electromechanical Group is likely to benefit from the growing momentum of AMETEK’s aerospace and engineered materials business. In addition, AMETEK’s growing investment in research & development, sales & marketing, manufacturing flexibility and engineering content are anticipated to contribute to organic growth in the to-be-reported quarter.

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

However, U.S.-China trade war and increasing competition remain concerns.

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. Expedia does not have the right mix, as you will see below.

AMETEK currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.

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.

Stocks That Warrant a Look

Here are some stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Amazon.com, Inc. (AMZN - Free Report) has an Earnings ESP of +4.01% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Facebook, Inc. (FB - Free Report) has an Earnings ESP of +0.61% and a Zacks Rank #2.

Thermo Fisher Scientific Inc. (TMO - Free Report) has an Earnings ESP of +0.54% and holds a Zacks Rank #3.

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