AMETEK, Inc. AME is set to report first-quarter 2018 results on May 2.
The company topped the Zacks Consensus Estimate the trailing four quarters, with an average beat of 5.26%.
In the last reported quarter, AMETEK delivered a positive earnings surprise of 4.48%. Earnings of 70 cents per share grew 20.7% on a year-over-year basis and 6.1% sequentially.
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. Organic sales grew 9%.
Notably, shares of AMETEK have returned 22.5% over a year, outperforming the industry’s rally of 14.1%.
For the first quarter, AMETEK expects earnings in a range of 70-72 cents per share. Sales are anticipated to be up low-double digits on a year-over-year basis.
Let’s see how things are shaping up for this quarter.
Factors to Consider
AMETEK continues to reap the benefits of its four core growth strategies which are operational excellence, global market expansion, investments in product development and strategic acquisitions.
Moreover, expanding product portfolio will continue to aid the company’s performance in all the geographical regions.
Recently acquired business, FMH Aerospace, will continue to strengthen AMETEK’s footprint in aerospace, defence and space markets.
Further, the company’s acquisition of Arizona Instruments, which complements the Brookfield viscosity measurement business, is likely to strengthen its presence in food, pharmaceutical and environmental market further.
We believe these endeavors will continue to expand AMETEK’s product offering which is likely to boost the top-line growth in the soon-to-be reported quarter. Additionally, regular investment in research and development and capital deployment in strategic acquisitions will continue to benefit the company’s product portfolio, which is likely to aid AMETEK’s performance in both segments.
The Zacks Consensus Estimate for the Electronic Instruments Group’s (“EIG”) first-quarter revenues is pegged at $691 million. The consensus estimate for Electromechanical Group (“EMG”) stands at $422 million.
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. The 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 currently has a Zacks Rank #2 but its Earnings ESP of -0.14%. Therefore, our proven model does not conclusively show an earnings beat for the company this quarter.
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.
Agilent Technologies A has an Earnings ESP of +3.72% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kemet Corp. KEM has an Earnings ESP of +6.45% and a Zacks Rank #3.
NVIDIA NVDA has an Earnings ESP of +0.65% and a Zacks Rank #3.
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