The company has reaffirmed its forecast for fiscal year 2025, anticipating a modest increase in revenue despite rising global trade uncertainties. AME projects that its overall sales for the year will experience low single-digit growth compared to 2024. In response to the challenges posed by tariffs, the company plans to implement specific mitigation strategies. Additionally, AME expects its adjusted earnings per diluted share to range between $7.02 and $7.18, reflecting an improvement of 3% to 5% from the previous year, 2024.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for AMETEK Inc (AME, Financial) is $191.76 with a high estimate of $225.00 and a low estimate of $158.00. The average target implies an
upside of 13.08%
from the current price of $169.58. More detailed estimate data can be found on the AMETEK Inc (AME) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, AMETEK Inc’s (AME, Financial) average brokerage recommendation is currently 2.3, indicating “Outperform” status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for AMETEK Inc (AME, Financial) in one year is $173.52, suggesting a
upside
of 2.32% from the current price of $169.58. GF Value is GuruFocus’ estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. More detailed data can be found on the AMETEK Inc (AME) Summary page.
AME Key Business Developments
Release Date: February 04, 2025
- Fourth Quarter Sales: $1.76 billion, up 2% from the same period in 2023.
- Organic Sales: Down 3% in the fourth quarter.
- Operating Income: $469 million, a 5% increase over the fourth quarter of 2023.
- Operating Margins: 26.6%, up 90 basis points from the prior year.
- EBITDA: $561 million, up 7% versus the prior year, with a margin of 31.9%.
- Free Cash Flow: $498 million, up 4% versus last year’s fourth quarter.
- Diluted Earnings Per Share: $1.87, up 11% versus the fourth quarter of 2023.
- Electronic Instruments Group (EIG) Sales: $1.21 billion, down 2% from the fourth quarter of last year.
- EIG Operating Income: $386.6 million, up 8% versus the prior year.
- EIG Operating Margins: 31.8%, up 280 basis points from the prior year.
- Electromechanical Group (EMG) Sales: $546.7 million.
- EMG Operating Income: $111.2 million, down 1% compared to the prior year period.
- EMG Operating Margins: 20.3%.
- Full Year 2024 Sales: $6.94 billion, up 5% from 2023.
- Full Year 2024 Operating Income: $1.81 billion, up 6%.
- Full Year 2024 EBITDA: $2.18 billion, up 8%.
- Full Year 2024 Earnings Per Share: $6.83, up 7% versus the prior year.
- Share Repurchases: $155 million in the fourth quarter, $220 million for the year.
- Acquisition of Kern Microtechnik: Approximately EUR105 million.
- Capital Expenditures: $52 million in the fourth quarter, $127 million for the full year.
- Effective Tax Rate: 12.8% in the fourth quarter, 17.3% for the full year.
- Total Debt at Year End: $2.1 billion, down $1.2 billion from the end of 2023.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AMETEK Inc (AME, Financial) delivered strong fourth-quarter results with record sales of $1.76 billion, operating income of $469 million, and EBITDA of $561 million.
- The company achieved a robust free cash flow of $498 million in the quarter, with a free cash flow to net income conversion of 129%.
- AMETEK Inc (AME) announced the acquisition of Kern Microtechnik, enhancing its capabilities in high-precision machining and optical inspection solutions.
- The Electronic Instruments Group (EIG) showed impressive margin expansion with operating margins reaching a record 31.8%, up 280 basis points from the prior year.
- AMETEK Inc (AME) has a strong pipeline of acquisition candidates and a healthy balance sheet, providing flexibility for strategic capital deployment.
Negative Points
- Organic sales in the fourth quarter were down 3%, indicating some challenges in achieving organic growth.
- The Electromechanical Group (EMG) faced headwinds from inventory destocking, with organic sales down 4% in the quarter.
- The company experienced project delays in the EIG segment, attributed to customer caution at year-end.
- AMETEK Inc (AME) anticipates macroeconomic uncertainties in 2025, which could impact growth projections.
- The effective tax rate is expected to increase to between 19% and 20% in 2025, up from 17.3% in 2024.
