- FY Adjusted EPS Forecast: Ametek has revised its full-year adjusted earnings per share (EPS) forecast to a range of $6.70 to $6.80. This is a slight reduction from the previous range of $6.74 to $6.86 and falls short of the estimated $6.83.
- Third Quarter Forecast: The adjusted EPS for the third quarter is projected to be between $1.60 and $1.62, which is lower than the estimate of $1.71.
- Second Quarter Results:
- Adjusted EPS came in at $1.66, higher than the previous year’s $1.57 and above the estimate of $1.64.
- Net sales were $1.73 billion, a 5.4% increase year-over-year but below the estimate of $1.78 billion.
- Electronic Instruments net sales were $1.15 billion, a 1.7% increase year-over-year but below the estimate of $1.17 billion.
- Electromechanical net sales were $581.2 million, a significant 14% increase year-over-year but below the estimate of $611.5 million.
- Cash and cash equivalents stood at $396.6 million, a 35% year-over-year decline, falling short of the estimated $541.2 million.
- Operating margin was 25.8%.
- Comments from Management:
- Adjusted EPS for FY 2024 is expected to be up 5% to 7% over 2023, boosted by a lower tax rate in the fourth quarter.
- Overall sales for FY 2024 are anticipated to increase by 5% to 7% compared to 2023.
- Third-quarter 2024 sales are expected to show a mid-single-digit percentage increase compared to the same period last year.
- Strong operating performance and flexibility of the operating model were highlighted, even amidst a slower growth environment.
- Free cash flow increased by 17% with a free cash flow conversion rate of 107% in the quarter.
- Sequential operating margins improved by 50 basis points from the first quarter’s adjusted margins, reflecting solid performance.
- Sales and earnings guidance has been adjusted accordingly for the year.
- Analyst Ratings: The company has received 10 buy ratings, 7 hold ratings, and no sell ratings from analysts.
Ametek Inc on Smartkarma
Analysts on Smartkarma, like Baptista Research, have been covering Ametek Inc closely. In one report titled “Ametek Inc.: How Long Will The Strong Organic Earnings Growth Last? – Major Drivers,” the analysts highlighted the strong start to 2024 for Ametek. The company achieved double-digit growth in earnings per share and set new records for operating income, sales, and EBITDA in the first quarter. This performance led to an increase in the earnings guidance for the full year, showcasing Ametek’s robust growth model and the quality of its businesses.
Another report by Baptista Research, “AMETEK Inc: Growth in Aerospace & Defense & 5 Other Factors Driving Its Growth! – Financial Forecasts,” focused on Ametek’s Q4 2023 earnings. The analysts noted the company’s strong financial performance, record sales, operating income, earnings per share, EBITDA, and cash flow. Additionally, Ametek ended the quarter with a record backlog, indicating positive momentum in various aspects of the business.
A look at Ametek Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores for Ametek Inc, the company shows a promising long-term outlook. With a Growth score of 4, indicating strong potential for expansion, Ametek Inc is well-positioned for future development and market growth. Additionally, the Resilience score of 3 suggests that the company has the ability to withstand economic uncertainties and maintain stability in challenging times.
While the Value and Dividend scores are rated at 2 each, signaling average performance in these areas, the Momentum score of 3 indicates a moderate level of market momentum. Overall, Ametek Inc, a global manufacturer of electronic instruments and electromechanical devices, appears to have a positive trajectory for the future based on its Smartkarma Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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