Ametek Q1 Profit Rises, Results Beat View; Lifts 2014 Earnings Outlook

(RTTNews) - Electronic-instruments maker Ametek, Inc. (AME) on Tuesday reported a 12 percent increase in profit for the first quarter from last year, boosted by double-digit revenue growth and higher margins.

Both revenue and earnings per share for the quarter beat analysts' estimates. Looking ahead, the company forecast higher earnings for the second quarter and also raised its earnings outlook for fiscal 2014. However, the earnings forecasts are mostly below analysts' estimates.

Frank Hermance, Chairman and Chief Executive Officer of Ametek said, "We had record performance as a result of the continued strong execution of our Four Growth Strategies. Solid core growth combined with our Operational Excellence initiatives and the contributions from recent acquisitions allowed us to deliver solid results and raise our 2014 earnings guidance."

The Berwyn, Pennsylvania-based company's net income for the first quarter was $140.59 million or $0.57 per share, up from $125.15 million or $0.51 per share in the year-ago period. On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.56 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 10 percent to $975.29 million from $882.85 million a year ago. Analysts had a consensus revenue estimate of $966.18 million for the quarter.

Operating margin for the quarter improved 40 basis points from the year-ago quarter to 22.7 percent.

Electronic Instruments Group of EIG sales for the quarter rose 18 percent from last year to $572.39 million, reflecting broad based strength across most of the company's businesses, with particular strength in its Process and Aerospace businesses.

Electromechanical Group or EMG sales increased 1 percent from the prior-year period to $402.90 million, driven by strength in the company's Precision Motion Control and Thermal Management Systems businesses.

Looking ahead to the second quarter, Ametek forecast earnings in a range of about $0.57 to $0.59 per share, representing an increase of 10 percent to 13 percent over last year, and sales to increase about 10 percent.

Analysts expect the company to report earnings of $0.59 per share for the quarter on 10.9 percent increase in revenues to $974.47 million.

For fiscal 2014, Ametek raised its earnings outlook to a range of $2.32 to $2.37 per share from the prior range of $2.30 to $2.35 per share. The company maintained its outlook for revenue to increase in high single digits on a percentage basis from 2013.

Analysts expect the company to earn $2.37 per share for the year on 8.7 percent increase in revenues to $3.91 billion.

AME is currently trading at $52.56, down $0.39 or 0.74 percent on a volume of 567,727 shares.