AMETEK Stock Gains 8% as Q3 Earnings and Revenues Beat Estimates

AMETEK, Inc. AME shares closed 7.7% higher on Thursday after the company reported better-than-expected results for third-quarter 2025. The company reported its third-quarter non-GAAP earnings of $1.89 per share, beating the Zacks Consensus Estimate by 7.4%. The figure increased 14% year over year.AMETEK’s top line of $1.89 billion surpassed the Zacks Consensus Estimate by 4.2%. The figure increased 11% year over year.The company experienced an increase in sales in its largest EIG segment and a year-over-year improvement in the EMG segment.AMETEK, Inc. Price, Consensus and EPS Surprise AMETEK, Inc. price-consensus-eps-surprise-chart | AMETEK, Inc. QuoteAMETEK’s Q3 2025 DetailsEIG sales (65.9% of total revenue) in the second quarter were $1.25 billion, up 10% from the year-ago quarter’s reported figure. Our model estimate for the EIG sales was pegged at $1.16 billion.In the third quarter, revenues from EMG (34.1% of total revenues) were $646.3 million, up 13% from the year-ago quarter. Our model estimate for the EMG sales was pegged at $618.5 million.For the third quarter, operating income increased 11% year over year to $496.1 million and operating margin expanded 10 basis points (bps) from the year-ago quarter.EIG's third-quarter operating income was $352.4 million, and operating income margins were 28.3% in the quarter.EMG’s operating income in the quarter increased 25% to $163.9 million with operating income margins of 25.4%, reflecting an increase of 250 bps from the year-ago reported figure.AME’s Balance Sheet & Cash FlowAs of Sept. 30, 2025, AME had cash and cash equivalents of $439.2 million compared with the previous quarter’s $619.7 million.As of June 30, 2025, AME’s long-term debt was $1.43 billion, down from the previous quarter’s $1.53 billion.Operating cash flow in the third quarter was $440.9 million, and free cash flow was $420 million. In the first three quarters of 2025, it generated operating and free cash flows of approximately $1.22 billion and $1.14 billion, respectively. In the third quarter, the company’s free cash flow to net income conversion was 113%.AME Raises GuidanceFor 2025, AME expects overall sales to be up in mid-single digits on a percentage basis compared to the 2024 reported level. The Zacks Consensus Estimate is pegged at $7.05 billion, indicating a year-over-year increase of 1.6%.The company expects its adjusted earnings per share to be in the range of $7.32-$7.37, up from the earlier guidance of $7.06-$7.20. The Zacks Consensus Estimate for earnings is pegged at $7.10 per share, indicating a year-over-year increase of 4%.For the fourth quarter of 2025, the company expects overall sales to be up approximately 10% compared with the same period last year. The Zacks Consensus Estimate is pegged at $7.77 billion, indicating a year-over-year increase of 3.7%.Adjusted earnings for the fourth quarter are expected to be in the range of $1.90 -$1.95, indicating a year-over-year increase of 2-4%. The Zacks Consensus Estimate for earnings is pegged at $1.78 per share, indicating a year-over-year rise of 7.2%.Zacks Rank and Other Stocks to ConsiderCurrently, AME carries a Zacks Rank #2 (Buy).Reddit Inc. RDDT, Credo Technology Group CRDO and Amphenol APH are some other top-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Impinj, Credo Technology Group and Amphenol sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Reddit Inc.’s full-year 2025 earnings is pegged at $1.88 per share, revised upward by a cent over the past seven days and suggests a year-over-year increase of 156.5%. Reddit shares have soared 27.6% year to date.The Zacks Consensus Estimate for Credo Technology Group’s fiscal 2026 earnings has been revised upward by a cent over the past 30 days to $2.04 per share, calling for an increase of 191.4% year over year. Credo Technology Group shares have rallied 155.3% year to date.The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $3.22 per share from $3.18 per share over the past seven days, implying 70.4% year-over-year growth. Amphenol shares have risen 100.2% year to date.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH): Free Stock Analysis Report AMETEK, Inc. (AME): Free Stock Analysis Report Credo Technology Group Holding Ltd. (CRDO): Free Stock Analysis Report Reddit Inc. (RDDT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks