Ametek shares fall as revenue misses expectations

Published 01/05/2025, 12:18
Ametek shares fall as revenue misses expectations

NEW YORK - Ametek Inc . (NYSE:AME) reported mixed first quarter results on Tuesday, with earnings beating analyst estimates but revenue falling short of expectations. The precision instruments maker’s shares dropped 3.3% following the announcement.

Ametek posted adjusted earnings per share of $1.75 for the first quarter of 2025, surpassing the analyst consensus of $1.69. However, revenue came in at $1.73 billion, slightly below the $1.74 billion analysts had projected and flat compared to the same quarter last year.

The company’s operating income increased 2% to $454.8 million, while operating margins expanded by 60 basis points to 26.3% compared to the prior year’s adjusted results. Free cash flow to net income conversion was strong at 112% for the quarter.

"AMETEK delivered excellent results in the first quarter with high single digit orders growth, outstanding operating performance, solid free cash flow conversion and strong margin expansion," said David A. Zapico, AMETEK Chairman and Chief Executive Officer.

Despite the positive earnings beat, investors appeared to focus on the revenue miss and flat YoY growth, leading to the stock’s decline. The company’s guidance for full-year 2025 earnings per share of $7.02 to $7.18 brackets the current analyst consensus of $7.08.

Zapico added, "The proven strength and flexibility of the AMETEK Growth Model, coupled with exceptional operational execution, enabled us to navigate an uncertain macroeconomic environment and deliver earnings solidly above our expectations."

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