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AMETEK, Inc. (NYSE:AME) came out with its full-year results last week, and we wanted to see how the business is performing and what top analysts think of the company following this report. AMETEK reported in line with analyst predictions, delivering revenues of US$5.2b and statutory earnings per share of US$3.75, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.
View our latest analysis for AMETEK
Following last week's earnings report, AMETEK's 17 analysts are forecasting 2020 revenues to be US$5.26b, approximately in line with the last 12 months. Statutory per share are forecast to be US$3.84, approximately in line with the last 12 months. In the lead-up to this report, analysts had been modelling revenues of US$5.36b and earnings per share (EPS) of US$3.88 in 2020. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$108, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on AMETEK, with the most bullish analyst valuing it at US$125 and the most bearish at US$88.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
In addition, we can look to AMETEK's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. It's pretty clear that analysts expect AMETEK's revenue growth will slow down substantially, with revenues next year expected to grow 2.0%, compared to a historical growth rate of 6.1% over the past five years. By way of comparison, other companies in this market with analyst coverage, are forecast to grow their revenue at 2.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that analysts still expect AMETEK to grow slower than the wider market.