AMETEK Inc (AME) Reports 5% Sales Increase and Raises 2023 Guidance
AMETEK Inc (NYSE:AME) reports a 5% increase in Q3 sales, reaching $1.62 billion.
Operating income rose by 14% to a record $438.1 million, with operating margins also at a record 27.0%.
Adjusted earnings per diluted share were a record $1.64, up 13% from Q3 2022.
Company raises 2023 earnings guidance following strong Q3 performance.
AMETEK Inc (NYSE:AME) announced its financial results for the third quarter ended September 30, 2023, on October 31, 2023. The company reported a 5% increase in sales, reaching $1.62 billion, compared to the third quarter of 2022. Operating income also saw a significant increase, rising by 14% to a record $438.1 million. The company's operating margins hit a record 27.0%, up 220 basis points from the third quarter of 2022.
Financial Highlights
AMETEK's third quarter operating cash flow was a record $473 million, up 45% versus the prior year. On a GAAP basis, third quarter earnings per diluted share were $1.47. Adjusted earnings in the quarter were a record $1.64 per diluted share, up 13% from the third quarter of 2022.
AMETEK delivered excellent results in the third quarter, highlighted by exceptional operating performance, robust margin expansion and strong cash flows," stated David A. Zapico, AMETEK Chairman and Chief Executive Officer. "The strength of the AMETEK Growth Model was evident in our third quarter results as solid sales growth and operational excellence initiatives drove record earnings and cash flow. Given this strong performance and our outlook for the balance of the year, we are again raising our earnings guidance for the full year."
Business Segment Performance
The Electronic Instruments Group (EIG) reported sales of $1.14 billion in the third quarter, up 8% from the same quarter in 2022. EIGs operating income in the quarter increased 23% to a record $335.2 million and operating income margins were a record 29.5%, an increase of 360 basis points compared to the third quarter of 2022.
On the other hand, the Electromechanical Group (EMG) reported sales of $486.7 million in the third quarter, down 2% from the third quarter of 2022. EMGs third quarter operating income was $127.5 million while operating income margins were a very solid 26.2% in the quarter.
Outlook for 2023
AMETEK has raised its earnings guidance for 2023 following its strong Q3 performance. The company now expects overall sales to be up mid-to-high single digits compared to 2022. Adjusted diluted earnings per share are now expected to be in the range of $6.31 to $6.33, an increase of approximately 11% over the comparable basis for 2022.
For the fourth quarter, the company expects overall sales to be up mid-single digits on a percentage basis versus the prior year. Fourth quarter adjusted earnings per diluted share are anticipated to be in the range of $1.61 to $1.63, up 6% to 7% compared to the fourth quarter of 2022.
Explore the complete 8-K earnings release (here) from AMETEK Inc for further details.
This article first appeared on GuruFocus.
