AMETEK Inc (NYSE:AME) reported Q3 FY23 revenue growth of 5% Y/Y to $1.62 billion, missing the consensus of $1.66 billion.
Electronic Instruments Group (EIG) segment sales grew 8% Y/Y to $1.14 billion on strong organic sales growth and contributions from recent acquisitions.
EIG’s operating income rose 23% Y/Y to $335.2 million, with margins of 29.5% (+360 basis points Y/Y).
Electromechanical Group (EMG) segment sales fell 2% Y/Y to $486.7 million, and operating income stood at $127.5 million (margins at 26.2%).
Operating income increased 14% Y/Y to $438.1 million, with margins expansion of 220 basis points Y/Y to 27.0%.
Adjusted EPS rose 13% Y/Y to $1.64, beating the consensus of $1.58.
Operating cash flow in the quarter stood at $473 million, up 45% Y/Y. As of September 30, cash and cash equivalents stood at $841.9 million.
Outlook: AMETEK raised the adjusted EPS outlook to $6.31-$6.33 (from $6.18-$6.26) vs. consensus of $6.25 for FY23.
AMETEK continues to expect FY23 sales to be up mid-to-high single digits.
For Q4, AMETEK sees sales to be up mid-single digits Y/Y and adjusted EPS of $1.61-$1.63 vs. consensus of $1.61.
In a separate development, AMETEK acquired Amplifier Research Corp. for an undisclosed amount and inked a deal to acquire Paragon Medical for about $1.9 billion.
Price Action: AME shares are trading higher by 0.17% at $140.36 on the last check Tuesday.
