Teledyne Technologies (TDY) Q1 Earnings Beat, Sales Rise Y/Y

Teledyne Technologies Inc. TDY reported first-quarter 2022 adjusted earnings of $4.27 per share, which surpassed the Zacks Consensus Estimate of $4.09 by 4.4%. The bottom line also improved 33.9% from the year-ago quarter’s $3.19 per share.

Including one-time items, the company reported GAAP earnings of $4.46 per share, which improved 100% from the year-ago quarter’s $2.23.

Operational Highlights

Total sales in the first quarter amounted to $1,321 million, which exceeded the Zacks Consensus Estimate of $1,315 million by 0.5%. The top line also improved 64% from $805.7 million reported a year ago. Notably, all segments, except Engineered Systems, recorded higher year-over-year sales in the quarter.

Teledyne Technologies Incorporated Price, Consensus and EPS Surprise

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 7.8% year over year to $308.9 million in the first quarter. Higher sales of test and measurement instrumentation as well as marine instrumentation led to the upside.

The segment’s operating income improved 20.5% year over year to $71.6 million, driven by higher sales.

Digital Imaging: Quarterly sales in this division surged 185% year over year to $750.5 million. The improvement was driven by incremental net sales from the FLIR acquisition as well as strong organic sales growth from industrial sensors and cameras, x-ray products and micro-electro-mechanical systems.

Moreover, the segment’s operating income rose 122.5% year over year to $115.7 million, driven by contribution from the FLIR acquisition and organic sales growth.

Aerospace and Defense Electronics: In this segment, sales of $166.2 million went up 9.9% from the prior-year quarter due to higher sales of aerospace electronics as well as defense electronics.

Operating income also improved 51.6% year over year to $42.9 million on account of higher sales and a favorable product mix.

Engineered Systems: Sales in this division declined 8.9% year over year to $95.4 million in the first quarter owing to the lower sales of engineered products and turbine engines.

Operating income declined 36.9% to $9.4 million.

Financial Condition

Teledyne’s cash totaled $284.3 million as of Apr 3, 2022, compared with $474.7 million as of Jan 2, 2022. Total long-term debt was $3,831.8 million compared with $4,009.4 million as of Jan 2, 2022.

Its adjusted cash provided by operating activities was $79.7 million during first-quarter 2022 compared with $124.9 million during first-quarter 2021.

In the reported quarter, capital expenditures amounted to $21 million compared with $17.6 million in the year-ago quarter.

Moreover, the company generated an adjusted free cash flow of $58.7 million in first-quarter 2022, reflecting a 46.7% year-over-year decline.

Guidance

Teledyne expects to generate adjusted earnings of $4.32-$4.40 per share in the second quarter of 2022. The Zacks Consensus Estimate for quarterly earnings, pegged at $4.37, lies just above the mid-point of the guided range.

For 2022, the company expects earnings of $17.75-$18.00 per share. The Zacks Consensus Estimate for Teledyne’s full-year earnings stands at $18.01 per share.

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 Defense Releases

Raytheon Technologies’ RTX first-quarter 2022 adjusted earnings per share (EPS) of $1.15 beat the Zacks Consensus Estimate of $1.01 by 13.9%. Moreover, the bottom-line figure improved 27.8% from the year-ago quarter’s adjusted earnings of 90 cents.

Its first-quarter sales of $15,716 million missed the Zacks Consensus Estimate of $15,799 million by 0.5%. The sales figure, however, rose 3% from $15,251 million recorded in the year-ago quarter.

Lockheed Martin LMT reported first-quarter 2022 earnings of $6.44 per share, which surpassed the Zacks Consensus Estimate of $6.22 by 3.5%. The bottom line however declined 1.8% year over year.

Its net sales amounted to $14.96 billion, which missed the Zacks Consensus Estimate of $15.53 billion by 3.7%. The top line also declined 8% from $16.26 billion reported in the year-ago quarter

An Upcoming Release

Northrop Grumman NOC is scheduled to release its first-quarter 2022 results on Apr 28. The stock has a Zacks Rank #3.

Northrop Grumman has a four-quarter average earnings surprise of 11.05%. The long-term earnings growth rate of NOC stands at 6.2%. The Zacks Consensus Estimate for Northrop’s first-quarter sales and earnings is pegged at $8.88 billion and $5.95 per share, respectively.

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