PHILADELPHIA - AMETEK, Inc. (NYSE: AME) has reported a strong start to 2024, with first-quarter adjusted earnings per share (EPS) exceeding analyst expectations, despite revenue falling short of forecasts. The company announced an adjusted EPS of $1.64, surpassing the analyst estimate of $1.59. However, revenue for the quarter was $1.74 billion, slightly below the consensus estimate of $1.78 billion.
The first quarter saw a 9% increase in sales compared to the same period last year, marking a new record for the company. AMETEK's GAAP earnings per diluted share were $1.34, while adjusted earnings, which exclude certain acquisition-related costs, were up 10% from the first quarter of 2023.
The company's adjusted operating income also reached a record $446.4 million, a 10% increase from the previous year, with adjusted operating margins improving by 30 basis points to 25.7%.
AMETEK's Chairman and Chief Executive Officer, David A. Zapico, expressed satisfaction with the quarter's performance, highlighting record adjusted operating income, core margin expansion, and double-digit growth in adjusted EPS. The company also saw robust cash flow, with operating cash flow of $410 million and a free cash flow conversion rate of 123%.
The Electronic Instruments Group (EIG) reported a 4% increase in sales, while the Electromechanical Group (EMG) saw a significant 21% increase in sales from the first quarter of 2023. Despite some headwinds, the EMG's core operating margins stood at 24.1%.
Looking ahead, AMETEK raised its full-year 2024 adjusted EPS guidance to a range of $6.74 to $6.86, reflecting a 6% to 8% increase over 2023, and slightly above the consensus of $6.84.
For the second quarter of 2024, the company anticipates adjusted EPS to be between $1.63 and $1.65, which is a 4% to 5% increase from the second quarter of 2023 but below the analyst consensus of $1.67.
Zapico remains optimistic about AMETEK's strategic positioning for sustained success, citing the company's leading market segments, proven operating model, and strong cash flows. He expects overall sales for 2024 to increase by low double digits percentage-wise compared to 2023.
While the stock movement following the earnings release was not available, the company's financial performance and upward guidance revision suggest a steady outlook for AMETEK's shares.
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