AMETEK Earnings
AMETEK, Inc. closed the fourth quarter of 2024 on a high note, unveiling a robust financial performance reflective of their strategic focus and effective operations. The company continues to stand solidly amidst economic fluctuations, delivering record earnings and demonstrating resilience with steady growth across key financial metrics.
| Financial Metric | Q4 2024 | Q4 2023 | Year-over-Year % Change |
|---|---|---|---|
| Total Revenue | $1.76 billion | $1.725 billion | +2% |
| GAAP Earnings per Share (EPS) | $1.67 | $1.50 | +11% |
| Adjusted Earnings per Share (EPS) | $1.87 | $1.68 | +11% |
AMETEK Results
With a 2% year-over-year increase in total revenue to $1.76 billion, AMETEK has solidified its position as a leader in both financial prowess and operational success. The company’s GAAP Earnings per Share (EPS) increased by 11%, reflecting on its strategic investments and effective cost management. Adjusted EPS, which excludes one-time charges and provides a purer picture of core company performance, also saw an 11% rise. These results assert AMETEK’s trajectory towards sustainable long-term growth.
Revenue Breakdown
Digging deeper into segment-wise performance:
| Segment | Q4 2024 Revenue | Q4 2023 Revenue | Year-over-Year % Change |
|---|---|---|---|
| Electronic Instruments Group (EIG) | $1.21 billion | $1.235 billion | -2% |
| Electromechanical Group (EMG) | $546.7 million | $492.4 million | +11% |
The Electronic Instruments Group, despite a slight decline in revenue, managed to shore up its profitability margins. This is a testament to improved operational efficiencies and strategic maneuvers within the segment. In contrast, the Electromechanical Group's revenue spiked by 11%, driven notably by strategic acquisitions and robust performance within its Aerospace and Defense sectors.
Key Developments
- AMETEK achieved new heights with record operating margins of 26.6%.
- Operating cash flow also reached an unprecedented $550 million for the quarter.
- Remarkably, a robust free cash flow to net income conversion ratio of 129% was achieved.
- Seamless integration and beneficial synergies follow the acquisition of Paragon Medical, a recent strategic move to broaden market space in medical and adjacent sectors.
Comments from Company Officers
David A. Zapico, the Chairman and Chief Executive Officer, praised the company's focus and adaptability. He pinpointed AMETEK's ability to ride through new economic challenges as a cornerstone of their success while assuring stakeholders of the company’s solid positioning for an enduring bright future.
Dividends and Share Repurchases
In this period's report, there was no mention of dividends or any concrete plans regarding a share repurchase program. A future announcement may clarify this area as AMETEK continues to evaluate optimal shareholder return methods.
AMETEK Stock Forecast
Based on AMETEK’s remarkable performance and strategic positioning, coupled with the overall aggressive growth in segments, the projection for the company’s stock price remains optimistic. With a recent last price close at $184.13 and a market cap of $38.53 billion, the stock, despite a minor 0.23% decline post-earnings, showcases potential for revaluation. High projections for AMETEK’s stock could surge toward the $190–200 range, contingent on continued hands-on management and positive economic developments. In contrast, low projections might oscillate between $175–180 if market conditions tighten unexpectedly.
With its feet firmly on the ground and eyes set on the horizon, AMETEK shines as a paragon of resilience, strategic growth, and financial ingenuity, paving the path for an equally promising 2025.
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