Ametek (AME) Q4 Earnings: What's in the Cards this Time?

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Ametek Inc. AME , one of the leading manufacturers of electronic instruments and electromechanical devices, is set to report fourth-quarter 2016 results on Feb 7 before the bell.

Last quarter, its earnings exceeded the Zacks Consensus Estimate by 1.82%. Let's see how things are shaping up for this announcement.

Over the last one year, the stock has underperformed the Zacks Electronics - Testing Equipment industry. It has gained 11.32% compared with the industry's gain of 42.21%.

Factors at Play

In the third quarter, Ametek's revenues were negatively impacted by reduced demand stemming from the weakness in oil and gas and metals.

On the positive side, the company continued to see solid growth across its Ultra Precision Technologies business. This, in combination with a strong portfolio of differentiated businesses, is expected to help the company post better results.

We expect that it will continue to focus on investments and strategic acquisitions.

For the fourth quarter, the company expects revenues to be down in low single digits from the fourth quarter of 2015. Earnings are expected to be in a range of 57 cents to 59 cents per share.

AMTEK, Inc. Price and EPS Surprise

AMTEK, Inc. Price and EPS Surprise | AMTEK, Inc. Quote

Earnings Whispers

Our proven model does not conclusively show that Ametek will beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: Ametek currently has an Earnings ESP of 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate stand at 58 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank: Ametek currently carries a Zacks Rank #3 which when combined with a 0.00% ESP makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some companies that, as per our model, that have the right combination of elements to post an earnings beat this quarter:

Applied Optoelectronics AAOI with an Earnings ESP of +15.87% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .

ACI Worldwide ACIW with an Earnings ESP of +1.89% and a Zacks Rank #3.

Applied Materials AMAT with an Earnings ESP of +6.06% and a Zacks Rank #3.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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