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Dec 31, 2019
AMETEK Q4 2019 Earnings Report
AMETEK had a record fourth quarter with strong sales, operating margin expansion, and earnings growth.
Key Takeaways
AMETEK reported record fourth-quarter sales of $1.30 billion, a 3% increase compared to the fourth quarter of 2018. Operating income increased by 6% to $297.7 million, with operating margins expanding to 22.8%. GAAP earnings per diluted share were $0.96, while adjusted earnings were $1.08 per diluted share, a 13% increase year-over-year.
Achieved a record level of sales in Q4 2019.
Drove excellent operating margin expansion.
Delivered 13% earnings growth in the quarter.
Operating cash flow in the fourth quarter increased to a record $342.2 million, up 16% over the same period in 2018.
AMETEK
AMETEK
AMETEK Revenue by Segment
Revenue by Segment
Electronic Instruments Revenue
CapyFin.comElectromechanical Revenue
CapyFin.com Forward Guidance
For 2020, AMETEK expects overall sales to be up low single digits on a percentage basis compared to 2019. Organic sales for the year are expected to be roughly flat versus the prior year. Adjusted earnings per diluted share are expected to be in the range of $4.24 to $4.38, an increase of 1% to 5% over the prior year’s comparable basis.
Positive Outlook
- Overall sales are expected to be up low single digits on a percentage basis compared to 2019.
- Organic sales for the year are expected to be roughly flat versus the prior year.
- Adjusted earnings per diluted share are expected to be in the range of $4.24 to $4.38.
- Increase of 1% to 5% over the prior year’s comparable basis.
- First quarter of 2020, overall sales are expected to be up low single digits versus the first quarter of 2019.
Challenges Ahead
- Uncertainties remain in the global economy.
- Full year guidance assumes the Reading Alloys business is divested in the first quarter and excludes the gain on the anticipated sale.
- Adjusted earnings for the first quarter are anticipated to be in the range of $1.01 to $1.04 per share.
- Increase of 1% to 4% over the prior year comparable basis.
- Organic sales for the year are expected to be roughly flat versus the prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income