Apr 22nd, 2008
UPDATE 1-Ametek Q1 results above market expectations
(Recasts, adds analysts comments, details from research notes, share update)
By Biswarup Gooptu
BANGALORE, April 21 (Reuters) - Ametek Inc (AME.N: Quote, Profile, Research), which makes electronic instruments and electric motors, posted better-than-expected first-quarter earnings, helped by strong sales at its two major segments, sending its shares to a new year high.
The company also forecast full-year earnings above analysts estimates and expects revenue growth to be in the high teens.
Ametek said exposure to aerospace and power markets, and the impact of its recent acquisitions should help it meet its earnings estimates, even as the U.S. economy slows.
The company expects earnings of $2.47 to $2.52 a share for the year and 61 cents to 63 cents a share for the forthcoming quarter.
Analysts were expecting earnings of $2.45 a share, before items, on revenue of $2.4 billion, according to Reuters Estimates. For the second quarter, they expect earnings of 62 cents a share on revenue of $595.33 million.
In a research note to clients, Wachovia analyst Wendy Caplan retained Ametek as her “stock of the year” and raised her earnings estimates for 2008 and 2009.
“Ametek’s relentless focus on cost reduction should continue to broadly drive profits,” Caplan said. “Acquisitions continue to be a source of future earnings, even more so as the pricing environment improves.” Continued…
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8 Responses to “UPDATE 1-Ametek Q1 results above market expectations”
The real estate problem is over-blown and over-hyped and has little effect on the economy at-large. IMO. I’m sure a million people will disagree with me, but I’d like to see some legitimate empirical evidence of the impact.Re gas prices: The fact is that most Americans do more driving than they need to do for work and survival. The summer gas prices will hurt tourism, but people will shift their tourism dollars into movies, consumer electronics, home-improvements, etc. etc. In other words people are able to respond to the high gas prices by reducing their gas consumption and shifting their consumption to other goods.As far as wal-mart goes the numbers mean nothing by themselves as they have been facing increased competition from other similar big-box chains, Kmart, Target, Meijer, and the like. Chances are if Wal-mart’s sales are down one or more of those other companies sales are up.So take it easy on the doom and gloom. I hope that college degree was not in economics.
those delivery vehicles aren’t running on batteries yet, either, or even ethanol, for that matter.
Maybe it’s because people have tasted a real pizza, and decided Dominos don’t make an edible example.
Of course I am not. why would you guys think that? if anything, I’d love if somebody would explain to me how I’m wrong.Actually, I am very worried about it and my main goal in posting this comment was to share how bewildered I am seeing how the stock market keeps beating up record after record, as if to suggest none of those factors really are cause for worry.I’d love to read your thoughts on the subject…
True, but when the stock market goes bing, real money disappears.
you are absolutely right. I shouldn’t have used the term “recession” in my argument since its definition is too narrow.Also, I appreciate that you corrected me in a non-demeaning manner instead of the: “I hope that college degree was not in economics” (wink).
Not as long as it’s cheap junk.