Latest news with #AMETEK
Yahoo
18-05-2025
- Business
- Yahoo
Was Jim Cramer Right About AMETEK (AME) Stock?
Back in 2024, on May 14, a caller asked about AMETEK, Inc (NYSE:AME), praising its chart and its role in electromechanical devices and gas analyzers for the semiconductor industry at the time. Cramer was enthusiastic back then, saying: "Oh man, come on, AME? Just one of the great industrials too. I mean, absolutely terrific company. Used to own a ton of it when I was at my hedge fund. I like what you're up to." Cramer's endorsement was modestly correct, with the stock rising 6.43% over the past year. AMETEK, Inc. (NYSE:AME) is a global manufacturer of precision instruments and electromechanical devices used across aerospace, power, and semiconductor industries. While we acknowledge the potential of AME to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AME and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None.
Yahoo
15-05-2025
- Business
- Yahoo
AME Q1 Earnings Call: Margin Expansion Offsets Flat Revenue Amid Tariff Uncertainty
Electronic products manufacturer AMETEK (NYSE:AME) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $1.73 billion. Its non-GAAP profit of $1.75 per share was 3.5% above analysts' consensus estimates. Is now the time to buy AME? Find out in our full research report (it's free). Revenue: $1.73 billion vs analyst estimates of $1.74 billion (flat year on year, 0.7% miss) Adjusted EPS: $1.75 vs analyst estimates of $1.69 (3.5% beat) Adjusted EBITDA: $561.2 million vs analyst estimates of $545.9 million (32.4% margin, 2.8% beat) Management reiterated its full-year Adjusted EPS guidance of $7.10 at the midpoint Operating Margin: 26.3%, up from 24% in the same quarter last year Free Cash Flow Margin: 22.8%, similar to the same quarter last year Organic Revenue was flat year on year, in line with the same quarter last year Market Capitalization: $41.41 billion AMETEK's first quarter results reflected the company's ability to maintain profitability despite flat year-over-year sales and revenue slightly below Wall Street expectations. Management attributed margin gains to operational discipline as well as ongoing cost improvements, particularly within the Engineered Materials Group, where order growth was notable in medical-related businesses like Paragon Medical. CEO Dave Zapico highlighted that the company's distributed operating structure, diversified portfolio, and focus on cost controls allowed it to deliver higher operating margins and free cash flow, even as macroeconomic uncertainty persisted. Looking ahead, AMETEK's leadership reiterated its full-year adjusted earnings per share guidance, citing confidence in tariff mitigation strategies and robust order backlogs. Management emphasized ongoing investments in research and engineering, targeted supply chain adjustments, and manufacturing localization as key levers to offset external pressures from trade policy changes. Zapico noted, 'We expect the benefits from these various mitigating actions to build throughout the year,' while also acknowledging that the timing of certain high-margin shipments to China could create near-term volatility in quarterly performance. AMETEK's management focused on operational execution, market diversification, and proactive tariff mitigation as central themes during the quarter. These factors were discussed as the main reasons for stable earnings and margin expansion despite sales remaining flat year over year. Order Growth in Medical Segment: Paragon Medical saw a significant rebound in orders, with management citing more than 25% growth as customers completed a destocking process. This improvement is expected to support stronger sales and margin gains in the second half of the year. Geographic Trends: U.S. markets delivered modest growth, offsetting slight declines in Europe and Asia. China sales fell by about 10%, with management attributing this to both local demand softness and the impact of tariffs. Tariff Response and Supply Chain Flexibility: Management outlined a comprehensive tariff mitigation plan, including strategic price increases, localized manufacturing, and supply chain shifts. The company expects to fully offset approximately $100 million in direct tariff exposure through these actions. Innovation and New Product Launches: The company highlighted recent launches such as Gatan's EDAX Elite Ultra x-ray spectroscopy system and Vision Research's Phantom KT-series cameras. These products leverage cross-business collaboration and are aimed at high-value research and industrial applications. Capital Allocation Priorities: AMETEK continues to prioritize acquisitions, but management also signaled readiness to deploy capital for opportunistic share repurchases given strong free cash flow and a robust balance sheet. A $1.25 billion repurchase authorization was noted as part of this flexible approach. Management's outlook for the remainder of the year centers on executing tariff mitigation strategies, advancing new product initiatives, and maintaining margin discipline amid shifting demand patterns and policy uncertainties. Tariff Mitigation Effects: The company's ability to pass through higher costs, adjust supply chains, and localize manufacturing is expected to protect margins and earnings against the impact of new trade tariffs, particularly those affecting China and Mexico. Order Backlog and Normalization: A near-record backlog and normalization of customer inventory levels in sectors like med tech and automation are anticipated to drive improved sales conversion in the second half of the year. Continued R&D Investment: Ongoing investments in research, development, and engineering are aimed at sustaining product differentiation, with management expecting these expenditures to support long-term growth in both core and adjacent markets. Matt Summerville (D.A. Davidson): Asked about the recovery in Paragon Medical orders and inventory destocking; management confirmed robust order growth and noted margin improvement is expected as volumes rise. Deane Dray (RBC Capital Markets): Inquired about geographic performance and tariff exposure; leadership detailed modest U.S. growth, international softness, and a $100 million annual direct tariff impact to be offset by mitigation actions. Jamie Cook (Truist): Questioned potential margin upside for Engineered Materials Group and the status of M&A management expects margin gains in the second half and emphasized an active acquisition pipeline despite some deal timing delays. Andrew Obin (Bank of America): Asked about opportunities arising from supply chain adjustments in response to tariffs; executives highlighted advantages from U.S.-based manufacturing and increased flexibility to win market share. Brett Linzey (Mizuho): Sought updates on automation OEM inventory levels and capital project delays; management noted destocking is nearing completion in the U.S. but continues in Europe, with some project decisions delayed but not canceled. In the coming quarters, the StockStory team will be monitoring (1) the pace at which AMETEK's order backlog converts to sales, especially as tariff-related shipment delays to China are resolved; (2) the effectiveness of price increases and localization strategies in sustaining operating margins; and (3) the impact of ongoing R&D investments and new product launches on market share gains. The timing and outcome of potential acquisitions will also be closely watched as a driver of future growth. AMETEK currently trades at a forward P/E ratio of 24.8×. Should you load up, cash out, or stay put? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
08-05-2025
- Business
- Yahoo
AMETEK (NYSE:AME) Declares US$0.31 Quarterly Dividend for June 2025
AMETEK has recently affirmed a quarterly dividend of $0.31 per share, set to be paid on June 30, 2025, following its strong earnings report on May 1, 2025, which highlighted an increase in net income despite a slight dip in sales. The company is actively pursuing acquisitions, supported by a solid cash flow and repurchase authorization. During the previous month, AMETEK's share price rose 11%, in line with a broader market uplift driven by a new trade agreement between the U.S. and the U.K. These corporate actions likely supported the stock's performance against the backdrop of an improving market. Buy, Hold or Sell AMETEK? View our complete analysis and fair value estimate and you decide. These 16 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch. The recent affirmation of a dividend, alongside AMETEK's solid earnings report, potentially supports its strategic investments and acquisition plans. These actions align with AMETEK's narrative of leveraging strong cash flows for growth. While recent share price movements show an 11% rise over the past month, driven by macroeconomic factors like the U.S.-U.K. trade agreement, it's essential to consider the longer-term performance. Over the past five years, AMETEK's stock, including dividends, delivered an impressive return of 124.96%. However, it underperformed against the broader U.S. market's 7.2% return over the past year. The affirmation of the dividend suggests confidence in future cash flows, which could further support revenue and earnings forecasts. However, potential risks such as trade policy uncertainties and dependency on acquisitions for growth remain. With analysts projecting a revenue growth rate of 5.6% annually until 2028, alongside increasing profit margins, the company's focus on diversification and technology investment appears poised to withstand various challenges. Current share price movements, while upward, exist within a broader analyst consensus price target of $190.91, representing a 12.1% potential increase from the prevailing share price of $167.85. Upon reviewing our latest valuation report, AMETEK's share price might be too optimistic. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:AME. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNA
06-05-2025
- Business
- CNA
AMETEK to acquire FARO Technologies in deal valued at $920 million
Industrial tools maker AMETEK will acquire FARO Technologies at an enterprise value of about $920 million, the two companies said on Tuesday, sending the target firm's shares soaring 36 per cent in early trade. Under the agreement, AMETEK is offering $44 per share in cash, representing about a 40 per cent premium to FARO's last close. The equity valuation pegs FARO's market value at $846 million. The acquisition is expected to be completed in the second half of the year. FARO Technologies produces 3D measurement and imaging solutions, including portable measurement arms, laser scanners and trackers, among others, and generated about $340 million in sales in 2024. The transaction will boost AMETEK's portfolio, particularly within its Electronic Instruments division, which produces test and measurement instruments for various sectors, including aerospace, medical, research, power, and industrial markets.
Reuters
06-05-2025
- Business
- Reuters
AMETEK to acquire FARO Technologies in deal valued at $920 million
May 6 (Reuters) - Industrial tools maker AMETEK (AME.N), opens new tab will acquire FARO Technologies at an enterprise value of about $920 million, the two companies said on Tuesday, sending the target firm's shares soaring 36% in early trade. Under the agreement, AMETEK is offering $44 per share in cash, representing about a 40% premium to FARO's last close. The equity valuation pegs FARO's market value at $846 million. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. The acquisition is expected to be completed in the second half of the year. FARO Technologies produces 3D measurement and imaging solutions, including portable measurement arms, laser scanners and trackers, among others, and generated about $340 million in sales in 2024. The transaction will boost AMETEK's portfolio, particularly within its Electronic Instruments division, which produces test and measurement instruments for various sectors, including aerospace, medical, research, power, and industrial markets. FARO's shares rose to $42.8 a piece before the bell, while AMETEK shares rose marginally.
