Back to top

Image: Bigstock

AMETEK (AME) to Report Q4 Earnings: What's in the Offing?

Read MoreHide Full Article

AMETEK, Inc. (AME - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 4.

For the fourth quarter, the company expects a sales decline in high-single digits on a year-over-year basis. The Zacks Consensus Estimate for the same is pegged at $1.2 billion, suggesting a decline of 7.8% from the year-ago quarter’s reported figure.

Further, the company expects adjusted earnings of $1.00-$1.04 per diluted share. The Zacks Consensus Estimate for earnings stands at $1.03 per share, indicating a slump of 4.6% from the year-ago quarter’s reported number.

The company beat estimates in each of the trailing four quarters, the surprise being 8.52%, on average.

AMETEK, Inc. Price and EPS Surprise

 

AMETEK, Inc. Price and EPS Surprise

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

Factors to Note

The company’s proper execution of its core growth strategies —includingoperational excellence, global market expansion, investments in product development and acquisitions —is expected to have continued aiding its performance in the fourth quarter.

Moreover, fourth-quarter results are expected to reflect the 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 on strong cash flow generation is anticipated to have continued aiding capital deployment activities, including acquisitions and share repurchases, in the quarter.

Further, positive contributions from 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 Gatan, IntelliPower, 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 topline in the quarter under review.

Sales for the Electromechanical Group (“EMG”) segment are likely to have benefited from the Pacific Design Technologies and 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 topline of the segment in the quarter under review.

However, widespread disruptions induced by the ongoing coronavirus pandemic are anticipated to have remained headwinds for both segments, which, in turn, are likely to get reflected in the top line of the companyfor the fourth quarter.

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:

Vishay Intertechnology, Inc. (VSH - Free Report) has an Earnings ESP of +4.82% and holds a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Synaptics Incorporated (SYNA - Free Report) has an Earnings ESP of +0.42% and currently carries a Zacks Rank of 2.

CDW Corporation (CDW - Free Report) has an Earnings ESP of +6.74% and a Zacks Rank of 2.

Legal Marijuana: An Investor’s Dream

Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.

Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.

Download Marijuana Moneymakers FREE >>

Published in