AMETEK (AME) Earnings And Revenues Beat Estimates In Q3
Zacks Investment Research | Oct 31, 2018 11:36PM ET
AMETEK, Inc. (NYSE:AME) delivered third-quarter 2018 adjusted earnings of 82 cents per share, which beat the Zacks Consensus Estimate by 4 cents and also exceeded management’s guidance of 76-78 cents per share. The figure increased 24.2% from the year-ago quarter but declined 1.2% sequentially.
Net sales increased 10.2% on a year-over-year basis but dropped 1.6% sequentially to $1.19 billion. The figure topped the Zacks Consensus Estimate of $1.18 billion. The robust organic growth and strong segmental performance drove year-over-year growth.
AMETEK recorded organic sales growth of 7% in the reported quarter. Improved operational activities and positive contributions from acquisitions also aided the results.
Notably, shares of AMETEK have returned 2.7% over a year against the AMETEK, Inc. Quote
Operating Details
For the third quarter, operating margin was 22.2%, expanding 100 basis points (bps) from the prior-year quarter but contracting 10 bps on a sequential basis.
Year-over-year expansion can primarily be attributed to the robust performance EIG and EMG segments, whose operating margins expanded 130 bps and 50 bps year over year. Further, operational efficiency in the reported quarter was a major positive.
Selling, general and administrative (SG&A) expenses were 12.1%, as percentage of sales, contracting 10 bps from the year-ago quarter as well as from the previous quarter.
Balance Sheet
As of Sep 30, 2018, cash and cash equivalents was $518.7 million, down from $557.7 million as of Jun 30, 2018.
Long-term debt was $1.83 billion, decreasing from $1.84 billion in the previous quarter.
Guidance
For fourth-quarter 2018, AMETEK expects sales to reflect growth of 10% on a year-over-year basis. The Zacks Consensus Estimate for sales is pegged at $1.21 billion.
Earnings are anticipated to lie in the range of 82-84 cents per diluted share, reflecting year-over-year growth of 17-20%. The Zacks Consensus Estimate for earnings is projected at 81 cents per share.
For 2018, the company anticipates total sales to grow by low-double digits and organic sales by mid-high single digit. The Zacks Consensus Estimate is pegged at $4.77 billion.
Further, AMETEK revised guided range upward for adjusted earnings per share from $3.16-$3.20 to $3.25-$3.27, reflecting growth of 25% from 2017. The Zacks Consensus Estimate for earnings is pegged at $3.21 per share.
Zacks Rank and Other Stocks to Consider
AMETEK carries a Zacks Rank #2 (Buy).
Some better-ranked stocks in the broader technology sector are Upland Software (NASDAQ:UPLD) , Ringcentral (NYSE:RNG) and Match Group (NASDAQ:MTCH) . While Upland Software and Ringcentral sport a Zacks Rank #1 (Strong Buy), Match Group carries a Zacks Rank #2. You can see Zacks Investment Research
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