The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ametek met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share grew significantly.
Margins improved across the board.
Ametek reported revenue of $762.8 million. The 10 analysts polled by S&P Capital IQ foresaw revenue of $765 million. Sales were 13% higher than the prior-year quarter's $678 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.63. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.61 per share on the same basis. GAAP EPS of $0.60 for Q4 were 26% higher than the prior-year quarter's $0.50 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 35.8%, 170 basis points better than the prior-year quarter. Operating margin was 21.9%, 190 basis points better than the prior-year quarter. Net margin was 13.4%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $815.1 million. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $3.30 billion. The average EPS estimate is $2.69.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ametek is outperform, with an average price target of $47.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.