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AMETEK, Inc. (NYSE:AME) Released Earnings Last Week And Analysts Lifted Their Price Target To US$248
AMETEK, Inc. AME | 233.51 | +0.33% |
As you might know, AMETEK, Inc. (NYSE:AME) recently reported its yearly numbers. AMETEK reported in line with analyst predictions, delivering revenues of US$7.4b and statutory earnings per share of US$6.40, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, AMETEK's 18 analysts are now forecasting revenues of US$7.97b in 2026. This would be a reasonable 7.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 10.0% to US$7.07. In the lead-up to this report, the analysts had been modelling revenues of US$7.93b and earnings per share (EPS) of US$7.11 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.8% to US$248. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on AMETEK, with the most bullish analyst valuing it at US$274 and the most bearish at US$208 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of AMETEK'shistorical trends, as the 7.7% annualised revenue growth to the end of 2026 is roughly in line with the 8.5% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 11% annually. So it's pretty clear that AMETEK is expected to grow slower than similar companies in the same industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on AMETEK. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for AMETEK going out to 2028, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with AMETEK , and understanding this should be part of your investment process.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


