AMETEK AME is scheduled to report fourth-quarter 2021 results on Feb 3.
For the fourth quarter, the company expects sales growth in the low-20% range on a year-over-year basis. The Zacks Consensus Estimate for sales is pegged at $1.46 billion, suggesting year-over-year growth of 21.9%.
Further, the company expects adjusted earnings of $1.28-$1.30 per share, indicating year-over-year growth of 19-20%. The Zacks Consensus Estimate for earnings is pegged at $1.31 per share, implying year-over-year growth of 21.3%.
The company beat estimates in each of the trailing four quarters, with the average being 4.8%.
Factors to Consider
AMETEK’s fourth-quarter results are expected to reflect positive contributions from acquisitions.
During the quarter, the company acquired Alphasense — a manufacturer of technologically advanced gas detection sensors — to add strength to its Electronic Instruments Group segment. This might have contributed to the segment revenues in the quarter under review.
Strong order momentum is likely to have persistently benefited its performance in the quarter under discussion.
Continuous investments to develop new products and advanced solutions as well as support growth initiatives are likely to have remained a tailwind.
The company’s growing focus on cash flow generation is anticipated to have aided capital deployment activities in the to-be-reported quarter.
In addition, impacts of strengthening momentum across the AMETEK growth model are expected to get reflected in the soon-to-be-reported quarterly results.
Yet, disruptions caused by the coronavirus pandemic might get reflected in the upcoming quarterly results.
Further, global supply chain constraints and logistic network challenges are expected to have remained concerns in the to-be-reported quarter.
What Our Model Says
Our proven model predicts an earnings beat for AMETEK this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
It has an Earnings ESP of +0.38% and a Zacks Rank #2, at present.
Other Stocks to Consider
Here are some other stocks that you may also consider as our model shows that these too have the right combination of elements to beat on earnings this season.
Endava (NYSE:DAVA) DAVA has an Earnings ESP of +0.85% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Endava is scheduled to release second-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 59 cents per share, suggesting an increase of 55.26% from the prior-year reported figure.
Monolithic Power (NASDAQ:MPWR) Systems MPWR has an Earnings ESP of +2.83% and a Zacks Rank #2 at present.
Monolithic Power Systems is set to report fourth-quarter 2021 results on Feb 10. The Zacks Consensus Estimate for MPWR’s earnings is pegged at $1.87 per share, which suggests an increase of 42.8% from the prior-year reported figure.
Analog Devices (NASDAQ:ADI) ADI has an Earnings ESP of +0.25% and a Zacks Rank #2 at present.
Analog Devices is scheduled to release first-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for ADI’s earnings is pegged at $1.79 per share, which suggests an increase of 24.3% from the prior-year reported figure.
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