Stock Monitor: ITT Inc. Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 22, 2018 / Active-Investors.com has just released a free earnings report on AMETEK, Inc. (NYSE: AME). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AME. AMETEK reported its fourth quarter and fiscal 2017 operating and financial results on February 01, 2018. The manufacturer of electronic instruments and electromechanical devices delivered record levels of sales, operating income, net income, diluted earnings per share, and cash flow for both the fourth quarter and full year 2017. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for ITT Inc. (NYSE: ITT), which also belongs to the Industrial Goods sector as the Company AMETEK. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, AMETEK most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
AMETEK's fourth quarter 2017 sales were a record $1.14 billion, up 17% compared to sales of $972.95 million in Q4 2016. The Company's reported quarter organic sales grew 9% with acquisitions adding 6% and foreign currency providing a 2% benefit to sales. The Company's sales exceeded analysts' estimates of $1.09 billion.
For Q4 2017, AMETEK's adjusted operating income was a record $251.4 million, up 18% on a y-o-y basis. The Company's operating income margins were 22% in the reported quarter, up 10 basis points compared to the year ago same period. Excluding the dilutive impact on margins from recent acquisitions, AMETEK's operating income margins were 22.4% in Q4 2017, up 50 basis points compared to Q4 2017.
On a GAAP basis, AMETEK's net income was $238.53 million, or $1.03 per diluted share, in Q4 2017 compared to earnings of $109.11 million, or $0.47 per share, in Q4 2016. The Company's reported quarter results included an after-tax gain of $75.5 million, or $0.33 per diluted share, which consist of a one-time, non-cash gain of $185.8 million related to the remeasurement of AMETEK's deferred tax liabilities as a result of the Tax Cuts and Jobs Act ("Tax Reform"). This gain was partially offset by a $94.2 million charge related to repatriation and associated withholding taxes due to Tax Reform and $16.1 million of realignment expense and charitable donations.
On an adjusted basis, AMETEK's earnings were $0.70 per share, up 21%, on a y-o-y basis in Q4 2017. The Company's earnings beat Wall Street's estimates of $0.67 per share.
For FY17, AMETEK reported sales of $4.30 billion, up 12% over FY16 sales of $3.84 billion. On a GAAP basis, the Company's earnings were $681.47, or $2.94 per diluted share, compared to $512.16 million, or $2.19 per diluted share, in FY16. Excluding the after-tax gain, AMETEK's earnings were $2.61 per diluted share, up 13%, over the prior year's adjusted results.
AMETEK's Segment Results
During Q4 2017, the Electronic Instruments Group's (EIG) sales were a record $741.52 million, reflecting a 20% increase over Q4 2016 sales of $616.04 million, driven by strong and broad based organic sales growth of 9% and the contributions from the acquisitions of Rauland and MOCON. On a GAAP basis, EIG reported operating income of $191.10 million in the reported quarter versus $141.08 million in the year earlier corresponding quarter. Excluding realignment costs in both periods, EIG's operating income was a record $195.6 million in Q4 2017, an increase of 20% on a y-o-y basis.
For Q4 2017, the Electromechanical Group's (EMG) sales totaled $401.57 million, up 13% compared to sales of $356.91 million in Q4 2016. On a GAAP basis, EMG's reported quarter operating income was $61.91 million compared to $46.69 million in the prior year's same quarter. Excluding realignment costs in both periods, EMG's operating income was $74.2 million in Q4 2017, reflecting an increase of 18% on a y-o-y basis.
Cash Matters
During Q4 2017, AMETEK's operating cash flow was a record $253 million and free cash flow conversion was 137% of adjusted net income. For FY17, AMETEK's operating cash flow was up 17% to a record $883.3 million, excluding a $50 million pension contribution in Q1 2017.
2018 Outlook
For FY18, AMATEK is forecasting overall sales to grow approximately 7% to 9%, driven by contributions from recent acquisitions and 3% to 5% organic sales growth. Earnings are estimated to be in the range of $2.95 to $3.05, up 13% to 17% compared to the adjusted results of FY17.
For Q1 2018, AMETEK is estimating sales to be up low-double digits on a percentage basis compared to Q1 2017. The Company is estimating earnings for the upcoming quarter to be in the band of $0.70 to $0.72, an increase of 17% to 20% over Q1 2017 results.
Stock Performance Snapshot
February 21, 2018 - At Wednesday's closing bell, AMETEK's stock marginally advanced 0.83%, ending the trading session at $76.35.
Volume traded for the day: 1.18 million shares.
Stock performance in the last three-month – up 8.67%; previous six-month period – up 22.39%; past twelve-month period – up 38.44%; and year-to-date – up 5.35%
After yesterday's close, AMETEK's market cap was at $17.48 billion.
Price to Earnings (P/E) ratio was at 25.95.
The stock has a dividend yield of 0.73%.
The stock is part of the Industrial Goods sector, categorized under the Diversified Machinery industry.
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