AMETEK's Earnings: A Preview

AMETEK AME releases its next round of earnings this Tuesday, August 03. Here is Benzinga's essential guide to AMETEK's Q2 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering AMETEK modeled for quarterly EPS of $1.1 on revenue of $1.33 billion. AMETEK reported a profit of $0.84 per share when it published results during the same quarter last year. Sales in that period totaled $1.01 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Tuesday, EPS would be up 30.95%. Revenue would be up 31.42% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Shares of AMETEK were trading at $139.05 as of July 30. Over the last 52-week period, shares are up 47.97%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. AMETEK is scheduled to hold the call at 08:30:00 ET and can be accessed here.