AMETEK to Report Q2 Earnings: What's in the Offing?

AMETEK, Inc. AME is scheduled to report second-quarter 2024 results on Aug 1.

For the second quarter, AMETEK expects sales growth in the mid to high-single digits from the year-ago quarter's reported figure. The Zacks Consensus Estimate for sales is pegged at $1.77 billion, suggesting an increase of 7.8% from the year-ago quarter's reported figure.

AMETEK expects adjusted earnings of $1.63-$1.65 per share, suggesting growth of 4-5% from the year-ago quarter's reported number. The Zacks Consensus Estimate for earnings is pinned at $1.64 per share, implying growth of 4.5% from the prior-year quarter's reported numbers.

AME's earnings beat estimates in each of the trailing four quarters, the average being 3.48%.

Let's see how things have shaped up for the upcoming announcement.

Key Factors to Note

AMETEK's second-quarter 2024 performance is expected to have benefited from solid momentum across the Electromechanical Group (EMG) segment, owing to positive contributions from Paragon Medical and Bison Engineering acquisitions.

The Zacks Consensus Estimate for second-quarter EMG sales is pinned at $603.96 million, indicating 18.1% growth from the year-ago quarter's reported figure.

Strength in the Electronic Instruments Group segment on the back of benefits from Navitar, Alphasense, Magnetrol International and Crank Software buyouts and strong momentum across aerospace & defense and materials analysis businesses is likely to have boosted the company's performance in the second quarter.

The Zacks Consensus Estimate for second-quarter EIG sales is pegged at $1.17 billion, indicating growth of 3.2% from the year-ago quarter's reported figure.

Increasing demand for AMETEK's solutions across high-growth markets, including med tech, clean energy and electrification, is expected to have acted as a tailwind.

AME's proper execution of its core growth strategies, including operational excellence, global market expansion and investments in product development and acquisitions, is expected to have driven the second-quarter performance.

The impacts of strengthening momentum across the AMETEK Growth Model are expected to get reflected in the to-be-reported quarter's results.

However, high goodwill associated with aggressive acquisition strategies and the impacts of rising geopolitical tensions are expected to have been headwinds for the company.

Macroeconomic uncertainties and unfavorable foreign exchange fluctuations are expected to have been concerns.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.

AMETEK currently has an Earnings ESP of -0.61% and a Zacks Rank #3.

Stocks to Consider

Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this season.

Aspen Aerogels ASPN has an Earnings ESP of +23.53% and sports a Zacks Rank #1 at present.

Aspen Aerogels is set to report its second-quarter 2024 results on Aug 7. The Zacks Consensus Estimate for ASPN's earnings is pegged at 5 cents per share, indicating a significant jump from the prior-year quarter's loss of 22 cents per share.

Apple has an Earnings ESP of +3.05% and a Zacks Rank #2 at present.

Apple is scheduled to release third-quarter fiscal 2024 results on Aug 1. The Zacks Consensus Estimate for AAPL's earnings is pegged at $1.33 per share, suggesting a jump of 5.6% from the prior-year quarter.

GoDaddy GDDY has an Earnings ESP of +13.08% and a Zacks Rank #3 at present.

GoDaddy is set to report second-quarter 2024 results on Aug 1. The Zacks Consensus Estimate for GDDY's earnings is pegged at $1.07 per share, indicating growth of 69.8% from the year-ago quarter's reported figure.

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