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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 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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