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AMETEK (AME) to Report Q2 Earnings: What's in the Offing?

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AMETEK, Inc. AME is scheduled to report second-quarter 2021 results on Aug 3.

For the second quarter, the company expects sales growth of alow 30%from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for the same is pegged at $1.3 billion, suggesting growth of 31.5% on a year-over-year basis.

The company expects adjusted earnings of $1.08-$1.10 per share, suggesting year-over-year growth of 29-31%. The Zacks Consensus Estimate for earnings stands at $1.11 per share, indicating arise of 32.1% from the year-ago quarter’s reported number.

The company beat estimates in each of the trailing four quarters, the surprise being 8.19%, on average.

AMETEK, Inc. Price and EPS Surprise

AMETEK, Inc. Price and EPS Surprise
AMETEK, Inc. Price and EPS Surprise

AMETEK, Inc. price-eps-surprise | AMETEK, Inc. Quote

Factors to Note

AMETEK’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 second quarter.

Positive contributions from acquisitions are likely to have aided its top-line growth in the soon-to-be-reported quarter.

Benefits from the acquisitions of Magnetrol International, Crank Software and EGS Automation are expected to have boosted the segmental performance of the company inthe quarter under review.

Notably, Magnetrol, offering level and flow-control solutions for challenging process applications, and Crank Software, offering embedded graphical user interface software and services, have joined theElectronic Instruments Group (“EIG”) segment.

EGS Automation, providing automation solutions used for designing and manufacturing highly-engineered and customized robotic solutions, has joined the Electromechanical Group (“EMG”) segment.

Apart from this, sales for the EIG segment are expected to have continued benefiting from the acquisitions of Gatan, IntelliPower, Motec, Forza, Telular and Spectro Scientific.

The strengthening of process businesses, especially the Materials Analysis business, is likely to have contributed to the segment’s topline in the quarter under review.

Sales for the EMG segment are likely to have continued gaining from the Pacific Design Technologies and FMH Aerospace buyout in the to-be-reported quarter. Rising demand for precision motion control solutions is expected to have contributed to the topline of the segment in the quarter under review.

Second-quarter results are expected to reflect the AMETEK Growth Model’s momentum.

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 on strong cash flow generation is anticipated to have continued aiding capital deployment activities, including acquisitions and share repurchases, in the second quarter.

However, widespread disruptions induced by the coronavirus pandemic are anticipated to have been headwinds for both segments. The impacts of theseare likely to get reflected in the upcoming results.

What Our Model Says

Our proven model does not conclusively predict 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

AMETEK has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to Consider

Here are some companies, which have the right combination of elements to post an earnings beat this quarter:

Agilent Technologies A has an Earnings ESP of +1.49% and a Zacks Rank of 2, at present.

Avnet AVT has an Earnings ESP of +9.82% and a Zacks Rank of 1, at present.

CyberArk Software CYBR has an Earnings ESP of +37.93% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.


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Avnet, Inc. (AVT) : Free Stock Analysis Report

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AMETEK, Inc. (AME) : Free Stock Analysis Report

CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report

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