Analyst Note| Joshua Aguilar |
Narrow-moat rated Ametek had an exceptional first quarter and start to its 2021 year. The company blew past analyst estimates and is on pace to easily exceed the cadence implied in management’s prior guide. First-quarter sales rose to $1.22 billion, a 1% increase over the first quarter of 2020 (or a 1% year-over-year increase in organic sales). GAAP operating margins rose 110 basis points year over year to 24.1%, thanks to a near 33% incremental at the segment operating margin level. Both the top line and margins propelled adjusted EPS growth of 5% year on year to $1.07.