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AMETEK, Inc. (NYSE:AME) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. AMETEK reported in line with analyst predictions, delivering revenues of US$6.9b and statutory earnings per share of US$5.93, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for AMETEK
Taking into account the latest results, the consensus forecast from AMETEK's 17 analysts is for revenues of US$7.15b in 2025. This reflects a satisfactory 3.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.3% to US$6.38. Before this earnings report, the analysts had been forecasting revenues of US$7.39b and earnings per share (EPS) of US$6.59 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
Despite the cuts to forecast earnings, there was no real change to the US$199 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic AMETEK analyst has a price target of US$225 per share, while the most pessimistic values it at US$158. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await AMETEK shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the AMETEK's past performance and to peers in the same industry. We would highlight that AMETEK's revenue growth is expected to slow, with the forecast 3.0% annualised growth rate until the end of 2025 being well below the historical 8.8% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.8% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than AMETEK.