Ametek Q3 Adj Profit Tops View, Sales Match; Lifts 2014 Earnings Outlook

(RTTNews) - Electronic-instruments maker Ametek, Inc. (AME) reported Tuesday a profit for the third quarter that increased from last year, boosted by double-digit revenue amid growth across operating segments.

Adjusted earnings per share topped analysts' expectations by a penny, while quarterly revenues matched their estimates. The company also provided earnings and sales growth guidance for the fourth quarter, below Street view, and raised earnings forecast for the full-year 2014, while maintaining annual sales growth outlook.

"AMETEK had another terrific quarter. We delivered 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 excellent results and exceed our third quarter earnings expectations," Chairman and CEO Frank Hermance said in a statement.

The Berwyn, Pennsylvania-based company reported net income of $141.81 million or $0.57 per share for the third quarter, up from $127.86 million or $0.52 per share in the prior-year quarter.

The results for the latest quarter include one-time tax events benefiting the tax line, largely offset by a related negative impact in other expense.

Excluding Zygo integration costs, adjusted net income for the quarter was $152.5 million or $0.62 per share. On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $0.61 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 16 percent to a record $1.03 billion from $890.01 million in the same quarter last year, and matched eight Wall Street analysts' consensus estimate of $1.03 billion.

Electronic Instruments Group or EIG, sales for the quarter grew 26 percent from last year to $631.57 million, driven by broad based strength across its aerospace, process and power & industrial businesses as well as contributions from the eight recent acquisitions.

Electromechanical Group or EMG, sales increased 3 percent from the prior-year quarter to $400.24 million, driven by strength in its precision motion control and engineered, materials, interconnects and packaging businesses.

Looking ahead to the fourth quarter, Ametek expects earnings in a range of about $0.60 to $0.62 per share, on projected sales growth in the high single digit percentage. Analysts expect the company to report earnings of $0.63 per share for the quarter on revenue growth of 11.3 percent to $1.05 billion.

For fiscal 2014, Ametek raised adjusted earnings outlook to a range of $2.40 to $2.42 per share from the prior range of $2.37 to $2.40 per share. The company maintained its outlook for sales growth in the low double digit percentage.

Street is currently looking for full-year 2014 earnings of $2.41 per share on revenue growth of 12.5 percent to $4.04 billion.

"While the global economy remains sluggish, we are confident in our ability to continue to deliver strong sales and earnings growth due to our excellent portfolio of businesses, proven operational capabilities, increased investments in organic growth initiatives, and a successful focus on strategic acquisitions," Hermance added.

In Tuesday's regular trading session, AME is currently trading at $50.80, down $0.47 or 0.92% on a volume of 0.51 million shares.