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Berwyn, Pennsylvania-based AMETEK, Inc. (AME) manufactures and sells electronic instruments and electromechanical devices. It operates through the Electronic Instruments Group (EIG) and the Electromechanical Group (EMG) segments. With a market cap of $41.1 billion, AMETEK operations span the Americas, Asia, Europe, and internationally.
The industrial giant is expected to announce its Q2 results before the markets open on Thursday, Jul. 31. Ahead of the event, analysts expect AME to report a profit of $1.68 per share, up 1.2% from $1.66 per share reported in the year-ago quarter. On a positive note, the company has consistently surpassed Street’s EPS projections in each of the past four quarters.
For the full fiscal 2025, AME is expected to deliver an adjusted EPS of $7.10, up nearly 4% from $6.83 in fiscal 2024. Meanwhile, in fiscal 2026, its earnings are expected to grow 6.9% year-over-year to $7.59 per share.
AME has gained 3.6% over the past 52 weeks, substantially underperforming the S&P 500 Index’s ($SPX) 13.4% returns and the Industrial Select Sector SPDR Fund’s (XLI) 19.7% surge during the same time frame.
AMETEK’s stock prices dipped 1.4% after the release of its mixed Q1 results on May 1. The company’s net sales for the quarter dropped by a marginal 24 bps compared to the year-ago quarter to $1.7 billion, missing the Street’s expectations by a small margin and unsettling investor confidence.
However, the company delivered high single-digit growth in orders, notable margin expansion, and improvement in cash flows. AMETEK’s free cash flow for the quarter increased 3.1% year-over-year to $394.5 million. Meanwhile, its adjusted operating margin expanded 60 bps compared to the year-ago quarter to 26.3%, leading to a modest 1.9% year-over-year increase in adjusted operating income to $454.8 million. Moreover, its adjusted EPS grew 6.7% year-over-year to $1.75, exceeding analysts’ projections by 3.6%. Following the initial dip, AME stock rebounded 1.7% in the next trading session.
The stock holds a consensus “Moderate Buy” rating overall. Of the 16 analysts covering the AME stock, opinions include 10 “Strong Buys,” one “Moderate Buy,” four “Holds,” and one “Strong Sell.” Its mean price target of $198.07 suggests an 11.2% upside potential from current price levels.
