AMETEK (AME) to Report Q3 Earnings: What's in the Offing?
AMETEK, Inc. AME is scheduled to report third-quarter 2023 results on Oct 31.
For the third quarter, AMETEK expects sales growth in the mid-single digits from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for sales is pegged at $1.65 billion, suggesting an increase of 6.2% from the year-ago quarter’s reported figure.
AMETEK expects adjusted earnings of $1.56-$1.58 per share, suggesting growth of 8-9% from the year-ago quarter’s reported number. The Zacks Consensus Estimate for earnings is pinned at $1.58 per share, implying growth of 8.9% from the prior-year quarter’s reported numbers.
AME’s earnings beat estimates in each of the trailing four quarters, the average being 4.55%.
AMETEK, Inc. Price and EPS Surprise
AMETEK, Inc. price-eps-surprise | AMETEK, Inc. Quote
Key Factors to Note
AMETEK’s third-quarter results are expected to reflect positive contributions from acquisitions.
The Navitar, Alphasense, Magnetrol International and Crank Software buyouts are anticipated to have driven growth in AMETEK’s Electronic Instruments (“EIG”) segment in the third quarter. The Zacks Consensus Estimate for third-quarter EIG sales is pegged at $1.14 billion, indicating growth of 7.8% from the year-ago quarter’s reported figure.
The Electromechanical Group (“EMG”) segment’s sales are likely to have gained from the Pacific Design Technologies buyout in the to-be-reported quarter. Cost-mitigation strategies are anticipated to have aided the segment’s operational performance in the quarter under review. The Zacks Consensus Estimate for first-quarter EMG sales is pinned at $508 million, indicating 2% growth from the year-ago quarter’s reported figure.
AME’s proper execution of its core growth strategies, including operational excellence, global market expansion and investments in product development and acquisitions, is expected to have driven the third quarter’s performance.
AMETEK’s focus on cash flow generation is anticipated to have aided capital deployment activities in the to-be-reported quarter.
The impacts of strengthening momentum across the AMETEK Growth Model are expected to be reflected in the to-be-reported quarterly results.
However, economic uncertainties might have been headwinds. High goodwill associated with aggressive acquisition strategies and the impacts of rising geo-political tensions are expected to be 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, as elaborated below.
AMETEK has a Zacks Rank #2 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks that you may consider, as our model shows that they have the right combination of elements to beat on earnings this season.
GoDaddy GDDY has an Earnings ESP of +14.09% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
GoDaddy is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for GDDY’s earnings is pegged at 71 cents per share, suggesting growth of 12.7% from the prior-year period’s reported figure.
BILL Holdings BILL has an Earnings ESP of +4.42% and a Zacks Rank #3 at present
BILL Holdings is set to report first-quarter fiscal 2024 results on Nov 2. The Zacks Consensus Estimate for BILL’s earnings is pegged at 50 cents per share, indicating an increase from the prior-year quarter’s reported figure of 14 cents.
Fastly FSLY has an Earnings ESP of +17.24% and a Zacks Rank #2 at present.
Fastly is set to report third-quarter 2023 results on Nov 1. The Zacks Consensus Estimate for FSLY’s earnings is pegged at a loss of 7 cents per share, suggesting growth of 50% from the prior-year period’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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AMETEK, Inc. (AME) : Free Stock Analysis Report
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