Electronic products manufacturer AMETEK (NYSE: AME) will be announcing earnings results this Tuesday before market hours. Here’s what to expect.
AMETEK beat analysts’ revenue expectations by 4.3% last quarter, reporting revenues of $1.89 billion, up 10.8% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ organic revenue estimates.
Is AMETEK a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting AMETEK’s revenue to grow 10.6% year on year to $1.95 billion, improving from the 1.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.94 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AMETEK has missed Wall Street’s revenue estimates five times over the last two years.
Looking at AMETEK’s peers in the electrical equipment segment, some have already reported their Q4 results, giving us a hint as to what we can expect. LSI posted flat year-on-year revenue, beating analysts’ expectations by 4.9%, and Viavi Solutions reported revenues up 36.4%, topping estimates by 1.1%. LSI traded up 8.6% following the results while Viavi Solutions was also up 17.5%.
Read our full analysis of LSI’s results here and Viavi Solutions’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 5.1% on average over the last month. AMETEK is up 6% during the same time and is heading into earnings with an average analyst price target of $232.41 (compared to the current share price of $224.09).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
