AME Earnings Prediction
The chart below shows how AME performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AME sees a -0.39% change in stock price 10 days leading up to the earnings, and a +3.19% change 10 days following the report. On the earnings day itself, the stock moves by +0.06%. This data can give you a slight idea of what to expect for the next quarter's release.
AME Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.71B
5.28%
-1.51%
Gross Margin
36.04%
-2.83%
0.14%
Operating Margin
26.10%
-3.33%
1.16%
Net Margin
19.91%
-5.05%
2.31%
EPS
1.47
0.00%
1.38%
No Data Available
AME Earnings Analysis
Ametek, Inc. Corporation (AME.N) Earnings Conference Call
Positive
Quarterly Sales Increase: 1. Strong Revenue Growth: AMETEK reported third quarter sales of $1.71 billion, a 5% increase from the same period in 2023, driven by a 7.5-point contribution from acquisitions.
Order Growth and Demand: 2. Robust Order Growth: Overall orders in the quarter increased by 12%, with a book-to-bill ratio of 1.02 and organic orders up 2%, indicating strong demand and a healthy backlog of $3.44 billion.
Free Cash Flow Efficiency: 3. High Free Cash Flow Conversion: The company achieved free cash flow of $461 million, up 4% year-over-year, with an impressive free cash flow conversion rate of 135%, reflecting operational efficiency.
Earnings Guidance Increase: 4. Increased Earnings Guidance: AMETEK raised its full-year earnings guidance to a range of $6.77 to $6.82 per diluted share, representing a 6% to 7% increase compared to the previous year.
Technology Enhancement Strategy: 5. Strategic Acquisitions: The acquisition of Virtek Vision, which has annual sales of approximately $40 million, is expected to enhance AMETEK's technology offerings and support long-term growth initiatives.
Negative
Organic Sales Decline: 1. Decline in Organic Sales: AMETEK reported a 2% decrease in organic sales for Q3 2024, despite overall sales increasing by 5% due to acquisitions.
Rising Interest Expenses: 2. Increased Interest Expense: Interest expense rose by $7 million to $25 million in Q3 2024 compared to the same quarter last year, attributed to higher debt balances from recent acquisitions.
Increased Tax Burden: 3. Higher Effective Tax Rate: The effective tax rate increased to 18.8% in Q3 2024, up from 17.7% in the same quarter of 2023, indicating a negative impact on net income.
OEM Sales Decline: 4. Weakness in OEM-Exposed Businesses: The Electromechanical Group experienced a 3% decline in organic sales, primarily due to inventory destocking in OEM-exposed businesses.
Project Delays Overview: 5. Project Delays in EIG: The Electronic Instruments Group faced project delays, particularly in test and measurement businesses, reflecting customer caution amid economic uncertainties.
AME FAQs
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AME Earning Call Sentiment
AMETEK, Inc. (AME) Q3 2024 Earnings Call Transcript
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AME.N
-1.61%Positive
Despite macroeconomic headwinds and project delays, AMETEK's strong financial performance, operational efficiency, and positive earnings guidance for Q4 indicate a positive outlook. The company's strategic acquisitions, share repurchases, and robust acquisition pipeline further bolster investor confidence. While there are risks like inventory destocking and increased interest expenses, the overall sentiment from the earnings call and Q&A suggests a positive stock price movement.