Yahoo Finance AMETEK (AME) Q1 Earnings Surpass Estimates, Sales Rise Y/Y
AMETEK, Inc. AME has reported first-quarter 2024 adjusted earnings of $1.64 per share, beating the Zacks Consensus Estimate by 3.1%. The bottom line rose 10% on a year-over-year basis.
Net sales of $1.74 billion increased 9% from the year-ago quarter. However, the figure missed the Zacks Consensus Estimate of $1.78 billion.
Top-line growth was primarily driven by the solid performance of the Electromechanical Group (EMG) segment. Also, strength in the Electronic Instruments Group (EIG) segment contributed well.
AMETEK’s proper execution of the four core growth strategies — operational excellence, global market expansion, investments in product development and acquisitions — is expected to continue aiding financial growth in the near and long term. The AMETEK Growth Model is likely to continue driving its business performance.
AMETEK, Inc. Price, Consensus and EPS Surprise
AMETEK, Inc. price-consensus-eps-surprise-chart | AMETEK, Inc. Quote
Segments in Detail
EIG (66.6% of total sales): AMETEK generated sales of $1.16 billion from the segment, reflecting year-over-year growth of 4%. The figure missed the consensus mark of $1.19 billion.
EMG (33.4%): The segment generated $579.4 million in sales in the first quarter, which improved 21% on a year-over-year basis. The figure lagged the Zacks Consensus Estimate of $590 million.
Operating Details
For the first quarter, operating expenses were $1.32 billion, up 10.7% year over year. The figure expanded 140 basis points (bps) from the year-ago quarter as a percentage of net sales to 76%.
The operating margin was 24%, which contracted 140 bps from the year-ago quarter.
The operating margin for EIG expanded 280 bps year over year to 30.5%. The same for EMG contracted 940 bps from the year-ago quarter to 15.7% due to Paragon integration costs.
Balance Sheet
As of Mar 31, 2024, cash and cash equivalents were $373.8 million, down from $409.8 million as of Dec 31, 2023.
The long-term debt was $1.877 billion as of Mar 31, 2024, up from $1.895 billion as of Dec 31, 2023.
Guidance
For second-quarter 2024, management expects sales growth in the mid to high-single digits from the year-ago quarter’s reported figure. The Zacks Consensus Estimate is pegged at $1.84 billion.
AMETEK expects adjusted earnings of $1.63-$1.65 per share, suggesting growth of 4-5% from the year-ago quarter’s reported number. The consensus mark is pinned at $1.66 per share.
For 2024, AME expects sales growth in the low-double digits from the 2023 reported level. The Zacks Consensus Estimate is pegged at $7.37 billion.
The company raised its guidance for adjusted earnings from $6.70-$6.85 per share to $6.74-$6.86, which suggests growth of 6-8% from the 2023 reported level. The Zacks Consensus Estimate for earnings is pegged at $6.82.
Zacks Rank & Other Stocks to Consider
AMETEK currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Arista Networks ANET, Alphabet GOOGL and Badger Meter BMI, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Arista Networks have gained 8.9% in the year-to-date period. The long-term earnings growth rate for ANET is anticipated to be 17.48%.
Shares of Alphabet have gained 16.5% in the year-to-date period. The long-term earnings growth rate for GOOGL is projected at 17.21%.
Shares of Badger Meter have gained 18.7% in the year-to-date period. The long-term earnings growth rate for BMI is likely to be 15.57%.
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