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Berwyn, Pennsylvania-based Ametek, Inc. (AME) is a leading manufacturer of electronic instruments and electromechanical devices in the aerospace, defense, medical, industrial, and power markets. With a market cap of $39.2 billion, the industrial services provider is scheduled to release its fiscal Q2 earnings results before the market opens on Thursday, Aug. 1.
Ahead of this event, analysts expect Ametek to report a profit of $1.64 per share, up 4.5% from $1.57 per share in the previous year's quarter. The company has surpassed Wall Street's bottom-line estimates in each of the past four quarters. In the most recent quarter, the company reported an EPS of $1.64, exceeding the consensus estimate by 3.1%.
For fiscal 2024, analysts expect AME to report EPS of $6.81, up 6.7% from $6.38 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 9.1% annually to $7.43.
Shares of Ametek gained 2.6% on a YTD basis, lagging behind the broader S&P 500 Index's ($SPX) 15.4% rise and the S&P 500 Industrial Sector SPDR's (XLI) 10.2% return over the same period.
Shares of the company rose marginally in February following its Q4 earnings report due to strong performance in its aerospace and defense sectors, which enhanced its margins and overall profitability. Plus, the company’s recent acquisitions contributed positively to the earnings. However, despite beating profit estimates and raising its annual profit forecast, the stock dipped 6.1% on May 2 as Q1 net sales fell short of analysts' expectations, driven by weaker-than-expected performance in the Electronic Instruments Group.
Analysts' consensus rating on AME stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 12 analysts covering the stock, opinions include seven "Strong Buys," one "Moderate Buy," and four "Holds."
The above consensus is slightly more bullish than three months ago, with six analysts suggesting a "Strong Buy." The average analyst price target of $189 suggests an 11.7% potential upside from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
