AMETEK Q1 Earnings Surpass Expectations, Revenues Decline Y/Y
AMETEK, Inc. AME reported first-quarter 2025 non-GAAP earnings of $1.75 per share, beating the Zacks Consensus Estimate by 3.6%. The figure increased 7% year over year.
AMETEK's top line of $1.73 billion missed the Zacks Consensus Estimate by 0.51%. The figure decreased 0.2% year over year.
The company experienced declining sales in its largest EIG segment, partially offset by the year-over-year improvement in the EMG segment. The stock gained 3.8% in the past year, outperforming the Zacks Electronics - Testing Equipment industry's decline of 3.5%.
Ametek's Q1 2025 Details
EIG sales (65.9% of total revenue) in the first quarter were $1.14 billion, down 1% from the year-ago quarter's reported figure. The figure missed the Zacks Consensus Estimate of $1.15 billion.
In the first quarter, revenues from EMG (34.1% of total revenues) were $588.3 million, up 2% from the year-ago quarter. The figure beat the consensus mark of $580 million.
For the first quarter, operating income increased 2% year over year to $454.8 million and operating margin expanded by 60 basis points (bps) from the year-ago quarter.
EIG's operating income in the quarter increased 0.3% to $354.1 million with operating income margins of 31%, reflecting an increase of 50 bps from the year-ago reported figure.
EMG's first-quarter operating income was $128.7 million and operating income margins were 21.9% in the quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
AME's Balance Sheet & Cash Flow
As of March 31, 2025, AME had cash and cash equivalents of $399 million compared with the previous quarter's $373.9 million.
As of March 31, 2025, AME's long-term debt was $1.46 billion from the previous quarter's levels.
Operating cash flow in the first quarter was $417.5 million, free cash flow was $394.5 million and free cash flow to net income conversion was 112%.
AME Updates Guidance
For 2025, AME still expects overall sales to be up in low single digits on a percentage basis compared to the 2024 reported level. The Zacks Consensus Estimate is pegged at $7.17 billion, indicating a year-over-year increase of 3.4%.
The company reiterated its guidance for adjusted earnings per share in the range of $7.02-$7.18, suggesting an increase of 3-5%. The Zacks Consensus Estimate for earnings is pegged at $7.13 per share, indicating a year-over-year increase of 4.4%.
Zacks Rank and Stocks to Consider
Currently, AME carries a Zacks Rank #3 (Hold).
Affirm AFRM, Super Micro Computer SMCI and Paycom Software PAYC are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. AFRM, SMCI and PAYC sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today's Zacks #1 Rank stocks here.
AFRM shares have gained 4% in the past year. The Zacks Consensus Estimate for AFRM's 2025 is pegged at a loss of 6 cents per share, narrowed by 7 cents over the past 60 days, suggesting growth of 96.7% from the year-ago quarter's reported figure.
SMCI shares have plunged 56.4% in the past year. The Zacks Consensus Estimate for SMCI's fiscal 2025 earnings has been revised downward to $2.52 in the past seven days, suggesting year-over-year growth of 14%.
PAYC shares have gained 6% over the past year. The Zacks Consensus Estimate for PAYC's 2025 earnings is pegged at $8.72 per share, implying a rise of 6.21% from the year-ago quarter's levels.
Zacks' Research Chief Names "Stock Most Likely to Double"
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This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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AMETEK, Inc. (AME): Free Stock Analysis Report
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