AMETEK (AME) To Report Q3 Earnings: What's In The Offing?
Zacks Investment Research | Oct 28, 2019 11:01PM ET
AMETEK, Inc. (NYSE:AME) is scheduled to report third-quarter 2019 results on Oct 31.
The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average positive earnings surprise being 3.14%.
Which Way Are Q3 Estimates Treading?
For the third quarter, AMETEK expects year-over-year sales growth in high-single digits. The Zacks Consensus Estimate for sales is pegged at $1.29 billion.
Further, the company expects third-quarter adjusted earnings between $1.00 and $1.02 per share, suggesting growth of 10-12% from the year-ago reported figure. The Zacks Consensus Estimate for earnings is pegged at $1.01.
Past-Quarter Performance
In the second quarter, AMETEK reported earnings of $1.05 per share, with a positive earnings surprise of 1.94%. The figure also grew 14.1% on a year-over-year basis.
Net sales rose 7% on a year-over-year basis and 0.13% sequentially to $1.29 billion. However, revenues missed the Zacks Consensus Estimate of $1.32 billion.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
The company’s proper execution of its core growth strategies — including operational excellence, global market expansion, investments in product development and acquisitions — is expected to have continued aiding its performance in the third quarter. Moreover, third-quarter results are expected to reflect AMETEK Growth Model’s momentum.
Further, growing research and development spending, and strengthening of engineering initiatives are expected to have driven its organic growth in the soon-to-be-reported quarter.
The company’s focus toward strong cash flow generation is anticipated to have continued aiding capital deployment activities in the quarter, including acquisitions and share repurchases.
Further, positive contributions from strategic acquisitions are likely to have aided its segmental performance.
Sales for the Electronic Instruments Group (“EIG”) segment are expected to have benefited from acquisitions of Motec, Forza, Telular and Spectro Scientific. Further, the strengthening of process businesses, especially the Materials Analysis business, is likely to have contributed to the segment’s top line in the quarter under review. Additionally, solid momentum in its Aerospace business is expected to have aided the company.
Sales for the Electromechanical Group (“EMG”) segment are likely to have benefited from the FMH Aerospace buyout in the to-be-reported quarter. Further, solid momentum across the company’s engineered materials business is expected to have contributed to the top line of the segment in the quarter under review.
Get The News You Want
However, the imposition of tariffs as a result of the U.S.-China trade war is anticipated to have negatively impacted AMETEK’s third-quarter performance.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for AMETEK this time around. The combination of a positive Zacks Investment Research
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