AMETEK (AME) Q1 2025 Earnings Call May 01, 2025 08:30 AM ET Company Participants Kevin Coleman - VP of Investor Relations & TreasurerDavid Zapico - Chairman and CEODalip Puri - Executive VP & CFODeane Dray - Managing DirectorJamie Cook - Managing Director - Equity ResearchJeffrey Sprague - Founder and Managing PartnerAndrew Obin - Managing Director - Equity ResearchBrett Linzey - Executive DirectorRob Wertheimer - Director of ResearchJoseph Giordano - Managing Director Conference Call Participants Matthew S ...

BERWYN, Pa., May 1, 2025 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced its financial results for the first quarter ended March 31, 2025.AMETEK's first quarter 2025 sales were $1.73 billion, in-line with the first quarter of 2024 sales. Operating income increased 2% to $454.8 million, and operating margins were up 60 basis points to 26.3%, both versus prior year's adjusted results. Free cash flow to net income conversion was 112% in the quarter.On a GAAP basis, first quarter earnings per diluted s ...

Core Viewpoint - Analysts project that Ametek (AME) will report quarterly earnings of $1.69 per share, reflecting a year-over-year increase of 3.1% and revenues of $1.74 billion, which is a 0.3% increase from the same quarter last year [1] Group 1: Earnings Projections - There has been a 0.1% upward revision in the consensus EPS estimate for the quarter over the last 30 days, indicating analysts' reassessment of their initial forecasts [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Group 2: Key Metrics Estimates - Analysts estimate 'Net Sales- Electronic Instruments' to be $1.16 billion, representing a 0.2% increase year over year [5] - 'Net Sales- Electro mechanical' is projected to reach $581.78 million, indicating a 0.4% year-over-year change [5] - 'Operating Income- Electronic Instruments' is forecasted at $347.56 million, down from $352.94 million reported in the same quarter last year [6] - 'Operating Income- Electromechanical' is expected to be $122.95 million, up from $90.69 million in the previous year [6] Group 3: Stock Performance - Over the past month, Ametek shares have declined by 3.4%, compared to a 0.8% decrease in the Zacks S&P 500 composite [6] - Ametek holds a Zacks Rank 3 (Hold), suggesting its performance will likely align with the overall market in the near term [6]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Ametek, with a focus on how actual results compare to estimates, which could significantly impact stock price [1][2]. Company Summary - Ametek is expected to report quarterly earnings of $1.69 per share, reflecting a year-over-year increase of +3.1% [3]. - Revenues are projected to be $1.74 billion, indicating a slight increase of 0.3% from the previous year [3]. - The consensus EPS estimate has been revised 0.14% higher in the last 30 days, suggesting a positive reassessment by analysts [4]. Earnings Prediction Insights - The Zacks Earnings ESP model indicates that Ametek has a positive Earnings ESP of +0.51%, suggesting analysts are optimistic about the company's earnings prospects [10][11]. - However, Ametek currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [11]. - Historically, Ametek has beaten consensus EPS estimates in the last four quarters, with a surprise of +1.63% in the most recent quarter [12][13]. Industry Context - Cognex Corporation, another player in the electronics-testing equipment industry, is expected to report earnings of $0.13 per share, representing a year-over-year increase of +18.2% [17]. - Cognex's revenues are anticipated to decline by 3.1% to $204.35 million [17]. - The consensus EPS estimate for Cognex has been revised down by 7.1% in the last 30 days, resulting in a negative Earnings ESP of -6.72% [18].

- Earnings to be released before market opens on Thursday, May 1, 2025 - BERWYN, Pa., April 17, 2025 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) will issue its first quarter 2025 earnings release before the market opens on Thursday, May 1, 2025. AMETEK will webcast its first quarter 2025 investor conference call on Thursday, May 1, 2025, beginning at 8:30 AM ET. The live audio webcast can be accessed by clicking on the Events & Presentations link in the "Investors" section of www.ametek.com. A replay of the ca ...

Core Viewpoint - Ametek's recent earnings report shows mixed results, with earnings per share exceeding estimates while revenue fell short, indicating potential challenges ahead for the company [2][3][4]. Financial Performance - Ametek reported Q4 2024 non-GAAP earnings of $1.87 per share, beating the Zacks Consensus Estimate by 1.6% and reflecting an 11.3% year-over-year increase [2]. - Total revenue for Q4 was $1.76 billion, missing the Zacks Consensus Estimate of $1.81 billion by 2.47%, but showing a 1.8% increase year-over-year [2]. - The EIG segment, accounting for 68.8% of total revenues, generated $1.21 billion, down 2% from the previous year and missing estimates [3]. - EMG revenues, making up 31.2% of total revenues, were $546.7 million, up 11% year-over-year but also below consensus [4]. Operating Income and Margins - Operating income for Q4 increased 5.4% year-over-year to $468.9 million, with operating margin expanding by 90 basis points [4]. - EIG's operating income rose 8% to $386.6 million, with operating income margins at 31.8%, an increase of 280 basis points [5]. - EMG's operating income was $111.2 million, with operating income margins at 20.3% [5]. Balance Sheet and Cash Flow - As of December 31, 2024, Ametek had cash and cash equivalents of $373.9 million, down from $396.3 million in the previous quarter [6]. - Long-term debt decreased by 19.2% to $1.43 billion [6]. - Operating cash flow for Q4 was $550 million, with free cash flow at $498.3 million, translating to a free cash flow to net income conversion of 129% [6]. Guidance and Outlook - For Q1 2025, Ametek expects sales to be roughly flat compared to the previous year, with adjusted earnings projected between $1.67 and $1.69 per share, indicating a 2-3% increase [7]. - For the full year 2025, Ametek anticipates low single-digit percentage growth in sales and adjusted earnings per share in the range of $7.02 to $7.18, suggesting a 3-5% increase [8]. - Recent estimates for the stock have been trending downward, indicating a potential shift in market sentiment [10][12].

Core Viewpoint - Abacus Mining & Exploration Corporation is initiating a non-brokered private placement to raise up to $350,000 through the issuance of units priced at $0.02 each, aimed at funding exploration and general working capital [1][2]. Group 1: Offering Details - The offering will consist of up to 17,500,000 units, each comprising one common share and one non-transferable common share purchase warrant, exercisable at $0.05 per share for three years [1][2]. - The offering is subject to TSX Venture Exchange approval and may involve cash fees or finder warrants for certain finders [5]. Group 2: Company Assets and Projects - Abacus recently acquired the Willow copper-molybdenum property and holds a lease on the adjacent Nev-Lorraine property, along with a 20% interest in the Ajax copper-gold development project in British Columbia [3][6]. - The Ajax project has faced environmental assessment challenges, with a previous decision to decline the issuance of an environmental assessment certificate, but efforts are being made to re-engage with stakeholders for a potential resubmission [6]. Group 3: Regulatory and Subscription Information - The offering is conducted under available prospectus exemptions, allowing existing shareholders to subscribe, and if subscriptions exceed $500,000, units will be allocated pro rata among qualifying subscribers [4]. - All securities issued will be subject to a four-month hold period under Canadian securities law [5].

Financial Performance - In 2024, the Company achieved record sales of $6,941.2 million, an increase of 5.2% from 2023[29]. - Diluted earnings per share for 2024 were a record $5.93, an increase of $0.26 or 4.5% compared to $5.67 per diluted share in 2023[29]. - The company's operating income for 2024 was $1,779.56 million, up from $1,707.46 million in 2023, reflecting a growth of 4.2%[224]. - Net income for 2024 reached $1,376.12 million, compared to $1,313.19 million in 2023, marking an increase of 4.8%[224]. - Basic earnings per share increased to $5.95 in 2024 from $5.70 in 2023, a rise of 4.4%[224]. - Consolidated net sales for 2024 reached $6,941.2 million, an increase from $6,596.9 million in 2023, representing a growth of approximately 5.2%[290][292]. - Net sales in the United States for 2024 were $3,649.4 million, compared to $3,468.8 million in 2023, reflecting a growth of approximately 5.2%[290][292]. - International net sales totaled $3,291.7 million in 2024, up from $3,128.2 million in 2023, marking an increase of about 5.2%[290][292]. - Cash provided by operating activities totaled $1,828,848 in 2024, compared to $1,735,296 in 2023, indicating an increase of 5.4%[234]. Acquisitions - In October 2024, the Company acquired Virtek Vision International for $117.5 million, enhancing its capabilities in advanced laser-based projection and inspection systems[30]. - The company acquired Virtek Vision International in October 2024, which constituted 0.9% of total assets and 0.2% of net sales for the year ended December 31, 2024[198]. - The company completed the acquisition of Paragon Medical in December 2023 for $1.9 billion, with $852.3 million allocated to intangible assets as of December 31, 2024[216][218]. - The total cash spent on acquisitions in 2023 amounted to $2,237.9 million, including Paragon Medical, Amplifier Research Corp., United Electronic Industries, and Bison Gear & Engineering Corp.[320]. - The Company finalized its acquisition of Paragon Medical, resulting in an increase of $62.2 million in goodwill and no material impact on the consolidated statement of income[319]. - The Company acquired Kern Microtechnik in January 2025, which has annual sales of approximately €50 million, further expanding its market presence[324]. Sales Composition - Process and analytical instrumentation sales represented 69% of EIG's 2024 net sales, serving industries such as power generation and pharmaceutical manufacturing[37]. - Aerospace and power instrumentation sales accounted for 31% of EIG's 2024 net sales, focusing on power monitoring and metering instruments[39]. - EMG's automation and engineered solutions markets represented 73% of its 2024 net sales, highlighting its focus on precision motion control solutions[51]. - Approximately 6% of EIG's 2024 net sales were made to its five largest customers, with no single customer comprising more than 2% of net sales[46]. - The Company’s major product segment, Process and Analytical Instrumentation, generated $3,232.9 million in sales for 2024, compared to $3,267.7 million in 2023, showing a slight decline of about 1.1%[294][296]. - Products transferred at a point in time accounted for $5,792.1 million of consolidated net sales in 2024, compared to $5,603.7 million in 2023, indicating an increase of approximately 3.4%[297]. International Presence - In 2024, 51% of EIG's net sales were to customers outside the United States, indicating a strong international presence[36]. - In 2024, 41% of EMG's net sales were to customers outside the United States, reflecting its global market reach[50]. Employee and Community Engagement - As of December 31, 2024, AMETEK has approximately 21,500 employees, with compensation programs designed to attract and retain a world-class workforce[77]. - The company actively engages in community support through the AMETEK Foundation, focusing on health, welfare, civic, and educational programs[73]. - The company has established a leadership development program for employees on track to become P&L leaders, involving both internal and external training[76]. - AMETEK's executive management team regularly reviews key talent to assess adequacy for future growth needs[75]. Financial Controls and Reporting - AMETEK's internal control over financial reporting was assessed as effective as of December 31, 2024, based on the COSO criteria[202]. - The company maintains a system of internal controls designed to provide reasonable assurance regarding the reliability of financial reporting[193]. - AMETEK's financial statements are prepared in conformity with U.S. generally accepted accounting principles, ensuring the integrity of financial information[191]. Sustainability and Innovation - AMETEK's commitment to sustainability includes a growing portfolio of clean technology solutions aimed at reducing carbon emissions and promoting renewable energy[72]. - The Company recorded research and development costs of $236.6 million in 2024, $220.8 million in 2023, and $198.8 million in 2022, indicating a year-over-year increase of approximately 7.9% from 2023 to 2024[273]. Asset and Liability Management - As of December 31, 2024, the total assets of AMETEK, Inc. were $14,631.17 million, a decrease from $15,023.53 million in 2023[229]. - Total liabilities decreased to $4,975.87 million in 2024 from $6,293.34 million in 2023, indicating a reduction of 20.9%[229]. - The fair value of long-term debt (including current portion) decreased to $1,778.7 million in 2024 from $2,087.6 million in 2023, a reduction of approximately 14.8%[309]. - The goodwill balance increased to $6,555.9 million as of December 31, 2024, reflecting recent acquisitions and adjustments[325]. - The balance of retained earnings at the end of 2024 was $11,057,684, compared to $9,940,343 at the end of 2023, marking an increase of 11.3%[232].

Core Viewpoint - AMETEK (NYSE: AME) has been a strong performer for investors, but current valuations suggest limited upside potential [1] Group 1: Company Performance - Recent results from AMETEK were not particularly exciting, but there are signs of improvement in order growth, which is expected to translate into increased sales [1] Group 2: Investment Strategy - The company is viewed as a value-focused investment, with a preference for stocks that are undervalued and have near-term catalysts [1]

Core Insights - AMETEK, Inc. has appointed Isabel S. Wells as Vice President, Information Technology and Chief Information Officer, effective February 7, 2025 [1] - Isabel Wells brings over 25 years of technology leadership experience and a strong background in IT and digital transformation [2] - AMETEK is a leading global provider of industrial technology solutions with annual sales of approximately $7.0 billion and aims for double-digit percentage growth in earnings per share [4] Company Profile - AMETEK operates in diverse niche markets and integrates four growth strategies: Operational Excellence, Technology Innovation, Global and Market Expansion, and Strategic Acquisitions [4] - The company has been listed on the NYSE for over 90 years and is a component of the S&P 500 [4] - Isabel Wells previously served as Chief Information Officer at Kimball Electronics and has held various roles at Avery Dennison, KPMG, and PA Consulting [3]