Teledyne (TDY) Beats on Q3 Earnings, Ups '23 EPS View
Teledyne Technologies Inc. TDY reported third-quarter 2023 adjusted earnings of $5.05 per share, which beat the Zacks Consensus Estimate of $4.75 by 6.3%. The bottom line also improved 11.2% from $4.54 recorded in the year-ago quarter.
The company recorded GAAP earnings of $4.15 per share, up 11% from the prior-year period’s figure of $3.74.
Operational Highlights
Total sales were $1,402.5 million, which missed the Zacks Consensus Estimate of $1,426.3 million by 1.7%. The top line, however, grew 2.9% from $1,363.6 million reported in the year-ago quarter.
This improvement can be attributed to higher year-over-year sales recorded across three of its four segments in the third quarter, except the Digital Imaging unit.
Teledyne Technologies Incorporated Price, Consensus and EPS Surprise
Teledyne Technologies Incorporated price-consensus-eps-surprise-chart | Teledyne Technologies Incorporated Quote
Segmental Performance
Instrumentation: Sales in this segment improved 7.4% year over year to $329.1 million, driven by higher sales across the marine instrumentation and test and measurement instrumentation product lines.
Adjusted operating income increased 18.7% year over year to $89 million, driven by higher sales and a favorable product mix.
Digital Imaging: Quarterly sales in this division slipped 0.3% year over year to $775.8 million. The decrease was on account of lower sales of unmanned ground systems for defense applications, micro-electro-mechanical systems, commercial maritime products and industrial imaging cameras.
The adjusted operating income rose 5.1% year over year to $187.5 million, driven by a favorable product mix.
Aerospace and Defense Electronics: Sales in this segment totaled $183.3 million, up 8.1% from that recorded in the prior-year quarter. The improvement was driven by higher sales of aerospace electronics and defense electronics.
Adjusted operating income also increased 11.5% year over year to $49.6 million due to higher sales.
Engineered Systems: Revenues in this division improved 4.1% year over year to $114.3 million. This increase was mainly due to higher sales of energy systems and engineered products.
This segment's operating income dropped 8.4% to $10.9 million due to lower margin space program revenues.
Financial Condition
Teledyne’s cash and cash equivalents totaled $508.6 million as of Oct 1, 2023, compared with $638.1 million as of Jan 1, 2023. Total long-term debt was $2,794 million compared with $3,620.5 million as of Jan 1, 2023.
Cashflow from operating activities totaled $278.2 million at the end of the third quarter compared with $268.9 million in the year-ago period.
Capital expenditure amounted to $23 million, up from $16.7 million recorded in the prior-year quarter.
TDY generated free cash flow of $255.2 million, indicating a 1.2% year-over-year increase.
Guidance
Teledyne expects adjusted earnings in the band of $4.95-$5.05 per share for the fourth quarter of 2023. The bottom-line estimate is pegged at $5.17, higher than the company's guided range.
For 2023, the company now expects adjusted earnings in the range of $19.20-$19.30 per share, up from the prior guidance of $19.00-$19.20. The Zacks Consensus Estimate for earnings is pegged at $19.11 per share, lower than the company’s guided range.
Zacks Rank
Teledyne currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Q3 Defense Earnings
Lockheed Martin Corporation LMT reported third-quarter 2023 adjusted earnings of $6.77 per share, which beat the Zacks Consensus Estimate of $6.66 by 1.7%. The bottom line, however, deteriorated 1.5% from the year-ago quarter's recorded figure.
Net sales were $16.88 billion, which beat the Zacks Consensus Estimate of $16.66 billion by 1.3%. The top line also rose 1.8% from $16.58 billion reported in the year-ago quarter.
RTX Corporation’s RTX third-quarter 2023 adjusted earnings per share (EPS) of $1.25 beat the Zacks Consensus Estimate of $1.19 by 5%. The bottom line also improved 3.3% from the year-ago quarter’s level of $1.21.
RTX’s third-quarter adjusted sales of $18,952 million beat the Zacks Consensus Estimate of $18,709 million by 1.3%.
Hexcel Corporation HXL reported third-quarter 2023 adjusted earnings of 38 cents per share, which missed the Zacks Consensus Estimate of 42 cents by 9.5%. However, the bottom line improved 15.2% from the year-ago quarter’s level of 33 cents.
Net sales totaled $420 million, which missed the Zacks Consensus Estimate of $431 million by 2.6%. However, the top line witnessed an improvement of 15% from the year-ago quarter’s level of $365 million.
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