We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AMETEK, Inc. (AME - Free Report) reported fourth-quarter 2022 adjusted earnings of $1.52 per share, beating the Zacks Consensus Estimate by 3.4%. The bottom line rose 11% on a year-over-year basis.
Net sales of $1.63 billion beat the Zacks Consensus Estimate of $1.58 billion. Further, the top line rose 8% year over year.
Top-line growth was driven by strong performances by the Electronic Instruments Group ("EIG") and Electromechanical Group ("EMG") segments in the reported quarter.
AMETEK’s proper execution of the four core growth strategies, including operational excellence, global market expansion, investments in product development and acquisitions, are expected to continue aiding financial growth in the near and long term. The AMETEK Growth Model is likely to continue driving AME’s business performance.
EIG (71.3% of total sales): AMETEK generated sales of $1.16 billion from the segment, reflecting growth of 10% from the year-ago quarter.
EMG (28.7% of sales): The segment generated $466 million of sales in the fourth quarter, which improved 4% on a year-over-year basis.
Operating Details
For the fourth quarter, operating expenses were $1.23 billion, up 7.4% year over year. The figure contracted by 40 basis points (bps) from the year-ago quarter’s level as a percentage of net sales to 75.5%.
Consequently, the operating margin was 24.5%, which expanded 50 bps from the year-ago quarter.
The operating margin for EIG expanded 10 bps year over year to 26.5%. The same for EMG expanded 100 bps from the year-ago quarter’s level to 24.6%.
Balance Sheet
As of Dec 31, 2022, cash and cash equivalents were $345.4 million, up from $309.9 million as of Sep 30, 2022.
Inventories amounted to $1.04 billion at the end of the fourth quarter compared with $1.02 billion at the end of the prior quarter.
Long-term debt was $2.16 billion in the reported quarter, up from $2.08 billion in the prior quarter.
Guidance
For first-quarter 2023, management expects sales growth in mid-single digits from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for fourth-quarter sales is pegged at $1.52 billion.
AMETEK expects adjusted earnings of $1.38-$1.42 per share, suggesting growth of 4-7% from the year-ago quarter’s reported number. The consensus mark for the same is pegged at $1.33 per share.
For 2023, AME expects sales growth in the mid-single digits from the 2022 reported level. The Zacks Consensus Estimate for 2022 sales is pegged at $6.39 billion.
Management anticipates adjusted earnings of $5.84-$6.00, suggesting growth of 3-6% from the 2022 reported level. The Zacks Consensus Estimate for earnings is pegged at $5.85 per share.
Image: Shutterstock
AMETEK (AME) Q4 Earnings & Sales Surpass Estimates, Rise Y/Y
AMETEK, Inc. (AME - Free Report) reported fourth-quarter 2022 adjusted earnings of $1.52 per share, beating the Zacks Consensus Estimate by 3.4%. The bottom line rose 11% on a year-over-year basis.
Net sales of $1.63 billion beat the Zacks Consensus Estimate of $1.58 billion. Further, the top line rose 8% year over year.
Top-line growth was driven by strong performances by the Electronic Instruments Group ("EIG") and Electromechanical Group ("EMG") segments in the reported quarter.
AMETEK’s proper execution of the four core growth strategies, including operational excellence, global market expansion, investments in product development and acquisitions, are expected to continue aiding financial growth in the near and long term. The AMETEK Growth Model is likely to continue driving AME’s business performance.
AMETEK, Inc. Price, Consensus and EPS Surprise
AMETEK, Inc. price-consensus-eps-surprise-chart | AMETEK, Inc. Quote
Segments in Detail
EIG (71.3% of total sales): AMETEK generated sales of $1.16 billion from the segment, reflecting growth of 10% from the year-ago quarter.
EMG (28.7% of sales): The segment generated $466 million of sales in the fourth quarter, which improved 4% on a year-over-year basis.
Operating Details
For the fourth quarter, operating expenses were $1.23 billion, up 7.4% year over year. The figure contracted by 40 basis points (bps) from the year-ago quarter’s level as a percentage of net sales to 75.5%.
Consequently, the operating margin was 24.5%, which expanded 50 bps from the year-ago quarter.
The operating margin for EIG expanded 10 bps year over year to 26.5%. The same for EMG expanded 100 bps from the year-ago quarter’s level to 24.6%.
Balance Sheet
As of Dec 31, 2022, cash and cash equivalents were $345.4 million, up from $309.9 million as of Sep 30, 2022.
Inventories amounted to $1.04 billion at the end of the fourth quarter compared with $1.02 billion at the end of the prior quarter.
Long-term debt was $2.16 billion in the reported quarter, up from $2.08 billion in the prior quarter.
Guidance
For first-quarter 2023, management expects sales growth in mid-single digits from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for fourth-quarter sales is pegged at $1.52 billion.
AMETEK expects adjusted earnings of $1.38-$1.42 per share, suggesting growth of 4-7% from the year-ago quarter’s reported number. The consensus mark for the same is pegged at $1.33 per share.
For 2023, AME expects sales growth in the mid-single digits from the 2022 reported level. The Zacks Consensus Estimate for 2022 sales is pegged at $6.39 billion.
Management anticipates adjusted earnings of $5.84-$6.00, suggesting growth of 3-6% from the 2022 reported level. The Zacks Consensus Estimate for earnings is pegged at $5.85 per share.
Zacks Rank & Stocks to Consider
AMETEK currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer & Technology sector are Agilent Technologies (A - Free Report) , Arista Networks (ANET - Free Report) and Asure Software (ASUR - Free Report) . All three companies carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Agilent has gained 7.6% in the past year. A’s long-term earnings growth rate is projected at 10%.
Arista Networks has lost 0.4% in the past year. The long-term earnings growth rate for ANET is projected at 17.5%.
Asure Software has gained 45% in the past year. The long-term earnings growth rate for ASUR is projected at 23%.