AMETEK Inc. (AME) CEO Dave Zapico on Q3 2022 Results - Earnings Call Transcript

AMETEK Inc. (NYSE:AME) Q3 2022 Earnings Conference Call November 1, 2022 8:30 AM ET

Company Participants

Kevin Coleman - Head, IR

Dave Zapico - CEO

Bill Burke - CFO

Conference Call Participants

Matt Summerville - D.A. Davidson

Allison Poliniak - Wells Fargo

Deane Dray - RBC Capital Markets

Josh Pokrzywinski - Morgan Stanley

Nigel Coe - Wolfe Research

Scott Graham - Loop Capital Markets

Rob Wertheimer - Melius Research

Andrew Obin - Bank of America

Christopher Glynn - Oppenheimer

Tristan Margot - Cowen

Operator

Welcome to the AMETEK’s Third Quarter 2022 Earnings Conference Call. All participants will be listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Kevin Coleman, Vice President of Investor Relations and Treasurer. Please go ahead.

Kevin Coleman

Thank you, Kate. Good morning, and thank you for joining us for AMETEK’s third quarter 2022 earnings conference call. With me today are Dave Zapico, Chairman and Chief Executive Officer; and Bill Burke, Executive Vice President and Chief Financial Officer.

During the course of today’s call, we will be making forward-looking statements, which are subject to change based on various risk factors and uncertainties that may cause actual results to differ significantly from expectations.

A detailed discussion of the risk and uncertainties that may affect our future results is contained in AMETEK’s filings with the SEC. AMETEK disclaims any intention or obligation to update or revise any forward-looking statements. Any references made on this call to 2021 or 2022 results will be on an adjusted basis, excluding after-tax, acquisition-related intangible amortization.

Reconciliations between GAAP and adjusted measures can be found in our press release and on the Investors section of our website. We’ll begin today’s call with prepared remarks by Dave and Bill, and then we’ll open it up for questions.

I’ll now turn the meeting over to Dave.

Dave Zapico

Thank you, Kevin, and good morning, everyone. AMETEK delivered record results in the third quarter, with stronger-than-expected sales growth and outstanding operational execution, leading to earnings above our expectations. Operationally, our businesses are performing exceptionally well and successfully offsetting inflation with price increases, resulting in impressive margin expansion.

We are also seeing continued strong and broad-based demand across our diversified niche markets, leading to impressive organic order growth and a record backlog of $3.2 billion. And this morning, we announced the acquisition of two excellent businesses, Navitar and RTDS Technologies, expanding our presence in high-end precision optics and in testing solutions for the electric power grid and renewable energy applications. I will provide more details on these acquisitions shortly. Given our results in the third quarter and outlook for the fourth quarter, we are again increasing our earnings guidance for the full year.