Ametek AME delivered first-quarter earnings of $0.51 per diluted share, an 11% increase versus the first quarter of 2012. While operating margin performance was ahead of pace to meet our full-year expectation, revenue growth, including acquisitions, of 7% was a bit weaker than we anticipated. Management increased the bottom end of its full-year EPS guidance from $2.07 to $2.08, resulting in a new midpoint of $2.10. Our current estimate is slightly below this due to our expectation that uncertainty around the macroeconomic environment will lead revenue growth to continue throughout the year. Our long-term thesis and narrow moat rating remain intact, though we will likely adjust our fair value estimate to account for the performance of recent acquisitions and the time value of money.

Aerospace and oil and gas end markets continue to be the main growth drivers for the company as industrial customers hold back on meaningful projects. We expect this dynamic to continue over the next several quarters in mature geographies. Ametek’s balance sheet remains healthy and should allow for the company to continue pursuing its acquisition-based growth strategy.