Ametek Earnings: Robust Backlog and Strong Financial Position Means Continued Strong Performance

We see no reason to change our $149 fair value estimate following our review of narrow-moat Ametek's second-quarter results. The quarter was relatively unremarkable, though Ametek did do a bit better on operating margins than we were expecting (by 60 basis points). This helped Ametek produce modestly higher earnings of $1.57 than we hoped to see during the quarter (about a 5% variance). We think there's a bit of sandbagging in management's revised full-year guide. Consequently, we model just above the top end of the adjusted EPS guide at $6.30 versus $6.26 at the top end of the range. We suspect we're simply modeling in a bit more revenue than what the mid-single-digit to high-single-digit revenue full-year guide calls for (we model 9%). Nonetheless, we think the stock remains fairly valued.