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AMETEK (AME) Q1 Earnings & Sales Surpass Estimates, Up Y/Y
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AMETEK, Inc. (AME - Free Report) reported first-quarter 2023 adjusted earnings of $1.49 per share, beating the Zacks Consensus Estimate by 5.7%. The bottom line rose 12% on a year-over-year basis.
Net sales of $1.59 billion surpassed the Zacks Consensus Estimate of $1.53 billion. The top line rose 10% year over year.
Top-line growth was driven by solid momentum across the Electronic Instruments Group (EIG) and Electromechanical Group (EMG) segments.
AMETEK’s proper execution of the four core growth strategies, including operational excellence, global market expansion, investments in product development and acquisitions, is 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 (70% of total sales): AMETEK generated sales of $1.12 billion from the segment, reflecting growth of 13% from the year-ago quarter.
EMG (30% of sales): The segment generated $479.9 million in sales in the first quarter, which improved by 2% on a year-over-year basis.
Operating Details
For the first quarter, operating expenses were $1.2 billion, up 7.8% year over year. The figure contracted by 120 basis points (bps) from the year-ago quarter’s level as a percentage of net sales to 74.6%.
Consequently, the operating margin was 25.4%, which expanded 120 bps from the year-ago quarter’s figure.
The operating margin for EIG expanded 290 bps year over year to 27.7% and that of EMG contracted 210 bps from the year-ago quarter’s level to 25.1%.
Balance Sheet
As of Mar 31, 2023, cash and cash equivalents were $399.9 million, up from $345.4 million as of Dec 31, 2022.
Inventories amounted to $1.12 billion at the end of the first quarter compared with $1.04 billion at the end of the prior quarter.
Long-term debt was $2.18 billion in the reported quarter, up from $2.16 billion in the prior quarter.
Guidance
For second-quarter 2023, management expects sales growth in the mid- to high-single digits from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $1.59 billion.
AMETEK expects adjusted earnings of $1.49-$1.51 per share, suggesting growth of 8-9% from the year-ago quarter’s reported number. The consensus mark for the same is pinned at $1.47 per share.
For 2023, AME expects sales growth in the mid- to high-single digits from the 2022 level. The Zacks Consensus Estimate for 2023 sales is pegged at $6.47 billion.
Further, management raised the guidance for adjusted earnings from $5.84-$6.00 to $5.96-$6.10, suggesting growth of 5-7% from the 2022 reported level. The Zacks Consensus Estimate for earnings is pegged at $5.98 per share.
Agilent Technologies is set to report second-quarter fiscal 2023 results on May 23. The Zacks Consensus Estimate for A’s earnings is pegged at $1.27 per share, reflecting growth of 12.4% from the year-ago quarter’s reported figure. A has lost 11.6% in the year-to-date period.
DigitalOcean is scheduled to release first-quarter 2023 results on May 9. The Zacks Consensus Estimate for DOCN’s earnings is pinned at 29 cents per share, suggesting a jump from 7 cents per share reported in the prior-year quarter. DOCN has gained 25.5% in the year-to-date period.
Arista Networks is scheduled to report first-quarter 2023 results on May 1. The Zacks Consensus Estimate for ANET’s earnings is pegged at $1.35 per share, suggesting an increase of 60.7% from the prior-year quarter’s reported figure. ANET has gained 26% in the year-to-date period.
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AMETEK (AME) Q1 Earnings & Sales Surpass Estimates, Up Y/Y
AMETEK, Inc. (AME - Free Report) reported first-quarter 2023 adjusted earnings of $1.49 per share, beating the Zacks Consensus Estimate by 5.7%. The bottom line rose 12% on a year-over-year basis.
Net sales of $1.59 billion surpassed the Zacks Consensus Estimate of $1.53 billion. The top line rose 10% year over year.
Top-line growth was driven by solid momentum across the Electronic Instruments Group (EIG) and Electromechanical Group (EMG) segments.
AMETEK’s proper execution of the four core growth strategies, including operational excellence, global market expansion, investments in product development and acquisitions, is 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 (70% of total sales): AMETEK generated sales of $1.12 billion from the segment, reflecting growth of 13% from the year-ago quarter.
EMG (30% of sales): The segment generated $479.9 million in sales in the first quarter, which improved by 2% on a year-over-year basis.
Operating Details
For the first quarter, operating expenses were $1.2 billion, up 7.8% year over year. The figure contracted by 120 basis points (bps) from the year-ago quarter’s level as a percentage of net sales to 74.6%.
Consequently, the operating margin was 25.4%, which expanded 120 bps from the year-ago quarter’s figure.
The operating margin for EIG expanded 290 bps year over year to 27.7% and that of EMG contracted 210 bps from the year-ago quarter’s level to 25.1%.
Balance Sheet
As of Mar 31, 2023, cash and cash equivalents were $399.9 million, up from $345.4 million as of Dec 31, 2022.
Inventories amounted to $1.12 billion at the end of the first quarter compared with $1.04 billion at the end of the prior quarter.
Long-term debt was $2.18 billion in the reported quarter, up from $2.16 billion in the prior quarter.
Guidance
For second-quarter 2023, management expects sales growth in the mid- to high-single digits from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $1.59 billion.
AMETEK expects adjusted earnings of $1.49-$1.51 per share, suggesting growth of 8-9% from the year-ago quarter’s reported number. The consensus mark for the same is pinned at $1.47 per share.
For 2023, AME expects sales growth in the mid- to high-single digits from the 2022 level. The Zacks Consensus Estimate for 2023 sales is pegged at $6.47 billion.
Further, management raised the guidance for adjusted earnings from $5.84-$6.00 to $5.96-$6.10, suggesting growth of 5-7% from the 2022 reported level. The Zacks Consensus Estimate for earnings is pegged at $5.98 per share.
Zacks Rank & Stocks to Consider
AMETEK currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader technology sector can consider some better-ranked stocks like Agilent Technologies (A - Free Report) , DigitalOcean (DOCN - Free Report) and Arista Networks (ANET - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Agilent Technologies is set to report second-quarter fiscal 2023 results on May 23. The Zacks Consensus Estimate for A’s earnings is pegged at $1.27 per share, reflecting growth of 12.4% from the year-ago quarter’s reported figure. A has lost 11.6% in the year-to-date period.
DigitalOcean is scheduled to release first-quarter 2023 results on May 9. The Zacks Consensus Estimate for DOCN’s earnings is pinned at 29 cents per share, suggesting a jump from 7 cents per share reported in the prior-year quarter. DOCN has gained 25.5% in the year-to-date period.
Arista Networks is scheduled to report first-quarter 2023 results on May 1. The Zacks Consensus Estimate for ANET’s earnings is pegged at $1.35 per share, suggesting an increase of 60.7% from the prior-year quarter’s reported figure. ANET has gained 26% in the year-to-date period.