AMETEK, Inc. AME reported fourth-quarter 2024 non-GAAP earnings of $1.87 per share, beating the Zacks Consensus Estimate by 1.6%. The figure increased 11.3% year over year.

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AME’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 2.63%.

AMETEK’s top line of $1.76 billion missed the Zacks Consensus Estimate of $1.81 billion by 2.47%. The figure increased 1.8% year over year.

Shares of AME have gained 8% in the past year, outperforming the Zacks Electronics - Testing Equipment industry’s gain of 6.6%. AMETEK’s guidance for first-quarter 2025 revenues and earnings outlook are unlikely to drive a significant increase in AME's stock price.

Ametek’s Q4 2024 Details

EIG sales (68.8% of total revenue) in the fourth quarter were $1.21 billion, down 2% from the year-ago quarter’s reported figure. The EIG sales figure missed the Zacks Consensus Estimate of $1.23 billion.

The EIG segment, which is also the largest segment of Ametek, has experienced project delays as customers remained cautious at year-end, leading to temporary shipment delays. However, the company reported that these headwinds were temporary in nature.

In the fourth quarter, revenues from EMG (31.2% of total revenues) were $546.7 million, up 11% from the year-ago quarter. The figure missed the consensus mark of $571.2 million.

For the fourth quarter, operating income increased 5.4% year over year to $468.9 million and operating margin expanded by 90 basis points (bps) from the year-ago quarter.

EIG’s operating income in the quarter increased 8% to $386.6 million with operating income margins of 31.8%, reflecting an increase of 280 bps from the year-ago reported figure.

EMG's fourth-quarter operating income was $111.2 million and operating income margins were 20.3% in the quarter.

AME’s Balance Sheet & Cash Flow

As of Dec. 31, 2024, AME had cash and cash equivalents of $373.9 million compared with the previous quarter’s figure of $396.3 million.

As of Dec. 31, 2024, the long-term debt declined 19.2% to $1.43 billion from the previous quarter’s levels.

Operating cash flow in the fourth quarter was $550 million, free cash flow was $498.3 million and free cash flow to net income conversion was 129%.

AME Updates Guidance

For the first quarter of 2025, management expects sales to be roughly flat compared to the year-ago quarter’s reported figure. The Zacks Consensus Estimate is pegged at $1.75 billion, reflecting a year-over-year increase of 3.1%.

AMETEK expects adjusted earnings to be in the band of $1.67-$1.69 per share, suggesting an increase of 2-3% compared with the prior-year quarter. The consensus mark is pinned at $1.72 per share.

For 2025, AME expects overall sales to be up in low single digits on a percentage basis compared to 2024 reported level. The Zacks Consensus Estimate is pegged at $7.27 billion, indicating a year-over-year increase of 4%.

The company released guidance for adjusted earnings per share in the range of $7.02-$7.18, suggesting an increase of 3-5%. The Zacks Consensus Estimate for earnings is pegged at $7.31 per share, indicating a year-over-year increase of 7.38%.

Zacks Rank & Stocks to Consider

Currently, AME carries a Zacks Rank #3 (Hold).

Bill Holdings BILL, Celestica CLS and CrowdStrike CRWD are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. BILL, CLS and CRWD sport Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus mark for BILL’s 2025 earnings has been revised upward by a penny to $1.77 per share over the past 60 days, indicating a 13% year-over-year increase. BILL shares have gained 26.2% in the past year.

The consensus mark for CLS’ 2025 earnings has been revised upward by 33 cents to $4.75 per share over the past seven days, indicating a 22.4% year-over-year increase. CLS shares have risen 257.3% in the past year.

The consensus mark for CRWD’s 2025 earnings has been revised upward by a penny to $3.74 per share over the past 30 days, indicating a 21% year-over-year increase. CRWD shares have gained 34.6% in the past year.

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