Electronic instruments company Ametek Inc. (AME: Quote), said Tuesday its profit for the second quarter rose 21 percent from last year as strength in aerospace and oil & gas business, as well as contributions from acquisitions, helped segments register robust growth. The company's quarterly earnings topped Street estimates by a penny, while revenues missed expectations.
Moving forward, Ametek detailed its earnings outlook for the third quarter, with the midpoint of the range indicated to miss Street estimates. The company raised its outlook for the full year, partly on strength in aerospace, and oil and gas businesses.
Shares of the company are currently down about 6 percent in morning trade on the New York Stock Exchange.
Ametek, which makes electronic instruments and electromechanical devices, said sales for the second quarter grew 9 percent year-over-year. By segment, Electronic Instruments Group (EIG) sales rose 11 percent compared to a year ago, and Electromechanical Group (EMG) was up 6 percent.
Berwyn, Pennsylvania-based Ametek reported second quarter net income of $113.7 million or $0.47 per share, up from $94 million or $0.39 per share last year. On average, 11 analysts polled by Thomson Reuters expected earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter were $826 million, compared to $759 million in the prior year. Analysts expected sales of $861.54 million for the quarter.
Moving forward, Ametek expects third quarter earnings in a range of $0.45 to $0.46 per share, while sales are anticipated to be up into low double digits on a percentage basis over last year. Analysts currently expect earnings of $0.46 per share for the quarter.
For fiscal year 2012, the company now estimates earnings of $1.83 to $1.85 per share, compared to prior guidance of $1.80 to $1.83 per share. Sales are expected to be up into low double digits on a percentage basis from 2011 with organic growth of low to mid single digits on a percentage basis. Analysts currently expect earnings of $1.85 per share for the full year.
AME is trading at $31.32, down 6.00%, on a volume of 1.4 million shares on the NYSE.
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by RTT Staff Writer
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