AMETEK Prepares for Q4 Earnings Announcement with Positive Expectations

Berwyn, Pennsylvania-based AMETEK, Inc. (AME) specializes in manufacturing electronic instruments and electromechanical devices. The company operates through two segments: the Electronic Instruments Group (EIG) and the Electromechanical Group (EMG). Currently, AMETEK has a market capitalization of $44.7 billion, with operations covering the Americas, Asia, Europe, and beyond.

Analysts Anticipate Strong Q4 Results

On February 4, AMETEK is set to announce its Q4 earnings report. Analysts project a profit of $1.84 per share, representing a 9.5% increase from last year’s $1.68 per share. Notably, the company has consistently outperformed Wall Street’s adjusted EPS estimates for the past four quarters, with an adjusted EPS of $1.66 in the last quarter—up 1.2% year-over-year and exceeding forecasts by 2.5%.

2024 and 2025 Earnings Forecasts Show Solid Growth

Looking ahead to the full fiscal year 2024, analysts anticipate an adjusted EPS of $6.80, reflecting a 6.6% increase from $6.38 in fiscal 2023. Projections for fiscal 2025 suggest a continued upward trend, with earnings expected to rise 7.5% to $7.31 per share.

Stock Performance in Context of Market Trends

Over the past 52 weeks, AMETEK shares have risen 7.6%, though this figure trails behind the S&P 500 Index’s gain of 21.8% and the Industrial Select Sector SPDR Fund’s (XLI) growth of 16.9% within the same timeframe.

Q3 Performance Surged, but Challenges Remain

After releasing its Q3 results on October 31, AMETEK’s stock jumped over 8.5%, reflecting earnings and revenue that exceeded Wall Street expectations. The Electromechanical segment led this growth, helping overall net sales increase by 5.3% year-over-year to $1.7 billion. The company navigated macroeconomic challenges well, boasting double-digit order growth. Additionally, its total operating cash flows rose more than 7% year-over-year to $1.3 billion over the past three quarters.

Mixed Results in Revenue Segments

Despite the strong performance of the Electromechanical segment, the Electronic Instrument segment saw a slight revenue decline. The Electromechanical segment’s revenue surged; however, its operating margin decreased by 329 basis points compared to the previous year, settling at 22.9%. This contraction led to a marginal 1.8% year-over-year growth in overall operating income, totaling $445.9 million.

Market Sentiment Shows Moderate Optimism

Currently, the consensus on AMETEK stock is moderately bullish, with a general “Moderate Buy” rating across the analysts. Out of 14 analysts, nine recommend a “Strong Buy,” one suggests a “Moderate Buy,” three advise a “Hold,” and one rates it a “Strong Sell.” The mean price target stands at $201.08, indicating a potential upside of 14.2% from current levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more details, please refer to the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.