AMETEK Q4 Earnings Beat: Will Q1 Outlook Drag the Stock Down?

AMETEK, Inc. AME reported fourth-quarter 2024 non-GAAP earnings of $1.87 per share, beating the Zacks Consensus Estimate by 1.6%. The figure increased 11.3% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.AME’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 2.63%.AMETEK’s top line of $1.76 billion missed the Zacks Consensus Estimate of $1.81 billion by 2.47%. The figure increased 1.8% year over year.Shares of AME have gained 8% in the past year, outperforming the Zacks Electronics - Testing Equipment industry’s gain of 6.6%. AMETEK’s guidance for first-quarter 2025 revenues and earnings outlook are unlikely to drive a significant increase in AME's stock price.AMETEK, Inc. Price, Consensus and EPS Surprise AMETEK, Inc. price-consensus-eps-surprise-chart | AMETEK, Inc. QuoteAmetek’s Q4 2024 DetailsEIG sales (68.8% of total revenue) in the fourth quarter were $1.21 billion, down 2% from the year-ago quarter’s reported figure. The EIG sales figure missed the Zacks Consensus Estimate of $1.23 billion.The EIG segment, which is also the largest segment of Ametek, has experienced project delays as customers remained cautious at year-end, leading to temporary shipment delays. However, the company reported that these headwinds were temporary in nature.In the fourth quarter, revenues from EMG (31.2% of total revenues) were $546.7 million, up 11% from the year-ago quarter. The figure missed the consensus mark of $571.2 million.For the fourth quarter, operating income increased 5.4% year over year to $468.9 million and operating margin expanded by 90 basis points (bps) from the year-ago quarter.EIG’s operating income in the quarter increased 8% to $386.6 million with operating income margins of 31.8%, reflecting an increase of 280 bps from the year-ago reported figure.EMG's fourth-quarter operating income was $111.2 million and operating income margins were 20.3% in the quarter.AME’s Balance Sheet & Cash FlowAs of Dec. 31, 2024, AME had cash and cash equivalents of $373.9 million compared with the previous quarter’s figure of $396.3 million.As of Dec. 31, 2024, the long-term debt declined 19.2% to $1.43 billion from the previous quarter’s levels.Operating cash flow in the fourth quarter was $550 million, free cash flow was $498.3 million and free cash flow to net income conversion was 129%.AME Updates GuidanceFor the first quarter of 2025, management expects sales to be roughly flat compared to the year-ago quarter’s reported figure. The Zacks Consensus Estimate is pegged at $1.75 billion, reflecting a year-over-year increase of 3.1%.AMETEK expects adjusted earnings to be in the band of $1.67-$1.69 per share, suggesting an increase of 2-3% compared with the prior-year quarter. The consensus mark is pinned at $1.72 per share.For 2025, AME expects overall sales to be up in low single digits on a percentage basis compared to 2024 reported level. The Zacks Consensus Estimate is pegged at $7.27 billion, indicating a year-over-year increase of 4%.The company released guidance for adjusted earnings per share in the range of $7.02-$7.18, suggesting an increase of 3-5%. The Zacks Consensus Estimate for earnings is pegged at $7.31 per share, indicating a year-over-year increase of 7.38%.Zacks Rank & Stocks to ConsiderCurrently, AME carries a Zacks Rank #3 (Hold).Bill Holdings BILL, Celestica CLS and CrowdStrike CRWD are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. BILL, CLS and CRWD sport Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus mark for BILL’s 2025 earnings has been revised upward by a penny to $1.77 per share over the past 60 days, indicating a 13% year-over-year increase. BILL shares have gained 26.2% in the past year.The consensus mark for CLS’ 2025 earnings has been revised upward by 33 cents to $4.75 per share over the past seven days, indicating a 22.4% year-over-year increase. CLS shares have risen 257.3% in the past year.The consensus mark for CRWD’s 2025 earnings has been revised upward by a penny to $3.74 per share over the past 30 days, indicating a 21% year-over-year increase. CRWD shares have gained 34.6% in the past year.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AMETEK, Inc. (AME): Free Stock Analysis Report Celestica, Inc. (CLS): Free Stock Analysis Report CrowdStrike (CRWD): Free Stock Analysis Report BILL Holdings, Inc. (BILL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks