Ametek Inc (NYSE:AME), an industrial technology solutions provider, stock rose 0.61% (As on February 7, 11:41:58 AM UTC-4, Source: Google Finance) after the company reported a better-than-expected profit for the fourth quarter, as fruitful acquisitions and high sales growth in its aerospace and defense businesses led to margin expansion. The company has continued to strengthen the portfolio in 2023, deploying approximately $2.25 billion in capital on acquisitions, including the most recent acquisition, Paragon Medical. Electronic Instruments Group (EIG) sales in the fourth quarter were a record $1.24 billion, up 7% from the same quarter in 2022. EIG’s operating income in the quarter increased 17% to a record $359.0 million and operating income margins were 29.0%, an increase of 250 basis points compared to the fourth quarter of 2022. Electromechanical Group (EMG) sales in the fourth quarter were $494.7 million, up 6% from the fourth quarter of 2022. EMG’s fourth quarter operating income was $112.3 million, while operating income margins were 22.7% in the quarter.

AME in the fourth quarter of FY 23 has reported the adjusted earnings per share of $1.68, beating the analysts’ estimates for the adjusted earnings per share of $1.63. The company had reported the adjusted revenue growth of 6.5 percent to $1.73 billion in the fourth quarter of FY 23, which is inline with the analysts’ estimates for revenue of $1.73 billion. AMETEK’s fourth quarter sales marked a record high, driven by organic growth and contributions from recent acquisitions. Operating income increased 12% to a record $445.0 million and operating margins were 25.7%, up 120 basis points from the fourth quarter of 2022. Operating cash flow in the quarter was a record $540.7 million, up 40% versus the prior year.

The company, which supplies products to a diverse set of markets including oil and gas and medical device manufacturers, also expects full-year 2024 adjusted earnings between $6.70 and $6.85 per share, a 5% to 7% growth from the year ago. Looking ahead to 2024, the company anticipates continued growth with sales expected to rise by low double.

For the first quarter of 2024, overall sales are expected to be up low double digits on a percentage basis compared to the same period last year. Adjusted earnings in the quarter are anticipated to be in the range of $1.56 to $1.60 per share, up 5% to 7% compared to the first quarter of 2023.