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Will Acquisition Synergies Drive AMETEK (AME) Q3 Earnings?

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AMETEK, Inc. (AME - Free Report) is slated to report third-quarter 2017 results before the bell on Nov 2.  We expect buyouts and strong organic growth across all segments to contribute significantly to the company’s top line in the quarter.

We observe that shares of AMETEK have gained 42.4% year to date, underperforming the industry’s 49.8% rally.

Here are the Q3 expectations on a segmental basis

Electronic Instruments Group (EIG)

Growth of the segment is expected to be driven by positive contributions from the acquisitions of HS Foils, Nu Instruments, and Rauland. The Zacks Consensus Estimate for this segment’s revenues is pegged at $651 million.  In the second quarter, EIG segment revenues increased 10.3% year over year.

Electromechanical Group (EMG)

This segment is expected to be driven by solid organic growth across all businesses and positive contribution from the Laserage acquisition. The Zacks Consensus Estimate for this segment’s revenues is pegged at $382 million. EMG revenues increased 6.6% year over year in the second quarter.

AMTEK, Inc. Price and EPS Surprise

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

AMETEK has a Zacks Rank #3 and an Earnings ESP of +0.18%. This indicates a likely positive surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are some stocks that you may also want to consider as our model shows these have the right combination of elements to post a positive earnings surprise:

NVIDIA Corp. (NVDA - Free Report) , with an Earnings ESP of +0.53% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

HubSpot, Inc. (HUBS - Free Report) , with an Earnings ESP of +26.53% and a Zacks Rank #2.

Extreme Networks, Inc., (EXTR - Free Report) with an Earnings ESP of +9.75% and a Zacks Rank #3.

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