Today’s Hot Stock under Review: AMETEK, Inc.’s (NYSE: AME)

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AMETEK, Inc.,AME

On 16 Jan 19, AMETEK, Inc.’s (NYSE: AME) shares recorded a trading volume 1,202,117 shares as compared to its average volume of 1,613,833 shares. The shares price traded between $69.57 and $70.40 during the last trading session above/below with +0.57% at $70.28. The company has 232.12M shares outstanding and market value of 16.313B. Over the one year trading period, the stock has a peak price of $81.92 and its down is recorded at $63.14.

AMETEK, Inc. (AME) recently reported its financial results for the third quarter ended September 30, 2018.

AMETEK’s third quarter 2018 sales were $1.19B, up 10% contrast to the third quarter of 2017, with organic sales growth of 7%. Operating income in the quarter raised 15% to $265.3M and operating income margins were 22.2%, up 100 basis points versus the prior-year period. Earnings in the quarter were $0.82 per diluted share, up 24% contrast to the third quarter of 2017.

“I am very happy with our results for the quarter. Organic sales growth was above our expectations and remains broad based across our businesses and geographies,” stated David A. Zapico, AMETEK Chairman and Chief Executive Officer. “We expanded margins importantly and delivered strong earnings growth in the quarter, reflecting the strength of our operating model, while increasing our earnings guidance for the full year.”

Electronic Instruments Group (EIG) 
In the third quarter of 2018, sales for EIG were $742.0M, an raise of 10% contrast to the same quarter of 2017. Operating income for the quarter was $190.3M, up 17% over the same period last year, and operating margins expanded 130 basis points to 25.6%.

“EIG performed extremely well in the quarter, delivering strong sales growth and exceptional operating performance with robust operating margin expansion. The sales growth was driven by 7% organic growth and the contributions from the acquisitions of Motec, Soundcom and Arizona Instrument,” commented Mr. Zapico.

Electromechanical Group (EMG)
EMG’s sales in the third quarter were $450.9M, up 9% over the same quarter last year. EMG operating income in the quarter was $92.7M, up 11% contrast to the third quarter of 2017, and operating margins expanded 50 basis points to 20.6%.

“EMG also had a great quarter with strong sales and operating performance. Sales were up nicely on 7% organic sales growth and the contribution from the acquisition of FMH Aerospace,” noted Mr. Zapico.

2018 Outlook:
“Our businesses have performed exceedingly well through the first three quarters of the year, firmly positioning the company to report record results in 2018. Our success this year demonstrates the strength of AMETEK’s business model,” commented Mr. Zapico.

“Following these outstanding results, we are again raising guidance for 2018. We now expect earnings per diluted share for the year to be in the range of $3.25 to $3.27, up 25% over 2017’s adjusted diluted earnings per share. This is an raise from our previous guidance range of $3.16 to $3.20 per diluted share. We expect overall sales for the year to be up low double digits on a percentage basis, with organic sales now up mid to high single digits,” he added.

“Overall sales in the fourth quarter of 2018 are predictable to be up about 10% versus the prior-year period, with organic sales up mid-single digits. Fourth quarter earnings are predictable to be in the range of $0.82 to $0.84 per diluted share, up 17% to 20% over the previous year’s adjusted earnings.”

 AME is recorded at 1.66 and the relative strength index of the stock stands 53.99. The stock price is going above to its 52 week low with 11.31% and lagging behind from its 52 week high with -14.21%.

 

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