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Sep 30, 2020

AMETEK Q3 2020 Earnings Report

Announced third quarter results and provided fourth quarter 2020 guidance.

Key Takeaways

AMETEK's third quarter 2020 sales were $1.13 billion, a 12% decline compared to the third quarter of 2019. Operating income in the quarter was $270.7 million and operating margins were a record 24.0%. On a GAAP basis, third quarter earnings per diluted share were $0.88. Adjusted earnings in the quarter were $1.01 per diluted share.

Delivered record operating margins as well as EBITDA margins of 29.5%.

Operating cash flow in the quarter was $310 million.

Free cash flow conversion of 146% of net income.

Reinstated quarterly guidance.

Total Revenue
$1.13B
Previous year: $1.28B
-11.7%
EPS
$1.01
Previous year: $0.96
+5.2%
Operating Margin
24%
Previous year: 23.6%
+1.7%
Gross Profit
$394M
Previous year: $453M
-13.0%
Cash and Equivalents
$1.3B
Previous year: $735M
+77.4%
Free Cash Flow
$300M
Previous year: $311M
-3.8%
Total Assets
$10.4B
Previous year: $9.22B
+13.2%

AMETEK

AMETEK

AMETEK Revenue by Segment

Forward Guidance

For the fourth quarter, we expect solid sequential improvements in sales versus the third quarter with year-over-year sales down high single digits on a percentage basis compared to last year’s fourth quarter. We anticipate fourth quarter adjusted earnings will be in the range of $1.00 to $1.04 per diluted share.

Positive Outlook

  • Expect solid sequential improvements in sales versus the third quarter

Challenges Ahead

  • Year-over-year sales down high single digits on a percentage basis compared to last year’s fourth quarter

Revenue & Expenses

Visualization of income flow from segment revenue to net income