) is set to report second-quarter 2014 results on Aug 5. Last
quarter, it posted a 1.8% positive surprise. Let's see how things
are shaping up for this announcement.
Growth Factors This Past Quarter
Ametek reported better-than-expected first quarter results with
both the top and bottom lines surpassing the Zacks Consensus
Estimate. Sales were up 10% from the year-ago quarter, primarily
driven by solid execution of its four growth strategies.
Additionally, strong core growth in combination with enhanced
operational performance and positive synergies from recent
acquisitions helped the company deliver strong results.
Ametek recently completed the acquisition of Zygo Corporation, a
provider of optical metrology solutions, high precision optics, and
optical assemblies, which can be utilized across a broad range of
scientific, manufacturing, and medical applications. The
acquisition will be merged in its Ultra Precision Technologies
Division within the Electronic Instruments Group. The acquisition
will further ramp up Ametek's product line, strengthen its market
position and boost the bottom line through revenue growth and
effective operational activities.
The company believes that strong execution of its four core growth
strategies of operational excellence, global market expansion, new
product development, and strategic acquisitions will continue to
play an important role in driving its growth. This in combination
with its excellent backlog and strong portfolio of businesses will
help the company post better results in the upcoming quarter.
Our proven model does not conclusively show that Ametek will beat
estimates this quarter. That is because a stock needs to have both
a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to
happen. That is not the case here as you will see below.
: Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 59 cents. Hence, the difference is 0.00%.
: Ametek's Zacks Rank #3 (Hold), when combined with a 0.00% ESP
makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies, which you may want to consider as
our model shows that they have the right combination of elements to
post an earnings beat this quarter:
- Charter Communications, Inc. (
), with Earnings ESP of +271.43% and a Zacks Rank #1 (Strong
- Cognex Corp. (
), with Earnings ESP of +12.00% and a Zacks Rank #1
- Semiconductor Manufacturing International Corp. (
), with Earnings ESP of +33.33% and a Zacks Rank #2 (Buy)
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