U.S. markets closed
  • S&P 500

    4,486.46
    +15.09 (+0.34%)
     
  • Dow 30

    35,258.61
    -36.15 (-0.10%)
     
  • Nasdaq

    15,021.81
    +124.47 (+0.84%)
     
  • Russell 2000

    2,267.84
    +2.19 (+0.10%)
     
  • Crude Oil

    82.49
    +0.05 (+0.06%)
     
  • Gold

    1,764.20
    -1.50 (-0.08%)
     
  • Silver

    23.24
    -0.02 (-0.10%)
     
  • EUR/USD

    1.1616
    -0.0003 (-0.02%)
     
  • 10-Yr Bond

    1.5840
    +0.0650 (+4.28%)
     
  • GBP/USD

    1.3735
    +0.0008 (+0.06%)
     
  • USD/JPY

    114.2850
    -0.0270 (-0.02%)
     
  • BTC-USD

    61,957.45
    +338.63 (+0.55%)
     
  • CMC Crypto 200

    1,430.53
    -21.11 (-1.45%)
     
  • FTSE 100

    7,203.83
    -30.20 (-0.42%)
     
  • Nikkei 225

    29,025.46
    +474.56 (+1.66%)
     

Teledyne Technologies (TDY) Q1 Earnings Beat, Revenues Up Y/Y

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·5 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Teledyne Technologies Inc. TDY reported first-quarter 2021 earnings of $3.02 per share, which surpassed the Zacks Consensus Estimate of $2.59 by 16.6%. The bottom line also improved 12.9% from the year-ago quarter’s $2.02.

The year-over-year bottom-line growth can be attributed to solid sales and an improvement in the operating income in the reported quarter.

Including one-time items, the company reported first-quarter GAAP earnings per diluted share of $2.23 compared with the year-ago quarter’s $2.17.

Operational Highlights

In the quarter under review, total sales amounted to $805.7 million, which exceeded the Zacks Consensus Estimate of $780 million by 3.3%. Moreover, the top line increased 2.7% from $784.6 million a year ago. Except for the Aerospace and Defense Electronics segment, all other segments recorded solid year-over-year sales growth in the first quarter.

Segmental Performance

Instrumentation: Sales in this segment rose 0.5% year over year to $286.5 million in the first quarter. Increased sales of environmental instrumentation, and test and measurement instrumentation led to the upside.

Operating income rose 16.9% year over year to $59.4 million on account of higher margins across most product lines.

Digital Imaging: Quarterly sales at this division increased 6.7% year over year to $263.3 million. The improvement can be attributed to increased sales of industrial and scientific sensors and cameras, detectors for space imaging applications, and geospatial imaging systems.

Operating income grew 18.7% year over year to $52 million, reflecting the increase in sales as well as improved margins across most product categories.

Aerospace and Defense Electronics: In this segment, quarterly sales of $151.2 million declined 3.3% from the prior-year quarter due to decreased sales for aerospace electronics. The continuous weakness in the commercial aerospace industry has affected sales of aerospace electronics in the quarter.

However, operating income soared 111.2% year over year to $28.3 million, which reflected the impact of a lower cost structure due to actions taken in 2020, lower severance, facility consolidation and lower research and development costs.

Engineered Systems: Sales in this division grew 8.5% year over year to about $104.7 million in the first quarter. The uptick was driven by higher sales of engineered products and increased sales from defense and other manufacturing programs, as well as electronic manufacturing services products.

Operating income rose 30.7% to $14.9 million on account of higher sales and an improved mix of manufacturing programs.

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

Financial Condition

Teledyne’s cash and cash equivalents totaled $3,234.2 million as of Apr 4, 2021, compared with $673.1 million at the end of 2020.

Long-term debt summed $3,243.3 million compared with $680.9 million at 2020-end.

Cash from operations at the end of the first quarter amounted to $124.9 million compared with $76.4 million at the end of first-quarter 2020.

In the reported quarter, capital expenditures were $17.6 million compared with $20.2 million in the year-ago quarter. Moreover, the company generated a free cash flow of $107.3 million compared with $56.2 million in the year-ago quarter.

Q2 & 2021 Guidance

Teledyne expects to generate adjusted earnings per share of $2.85-$2.95 in the second quarter of 2021. The Zacks Consensus Estimate for the same is pegged at $2.78 per share, which lies below the company’s guided range.

For 2021, the company expects to generate adjusted earnings per share of $12.00-$12.20. Currently, the Zacks Consensus Estimate for Teledyne’s full-year earnings is pegged at $11.45 per share, which is lower than the company’s bottom-line expectations.

Zacks Rank

Teledyne currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Lockheed Martin Corp. LMT reported first-quarter 2021 earnings of $6.56 per share, which surpassed the Zacks Consensus Estimate of $6.32 by 3.8%.

Hexcel Corporation HXL reported first-quarter 2021 loss of 10 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 16 cents.

Raytheon Technologies Corps RTX first-quarter 2021 adjusted earnings per share of 90 cents outpaced the Zacks Consensus Estimate of 88 cents by 2.3%.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Lockheed Martin Corporation (LMT) : Free Stock Analysis Report

Hexcel Corporation (HXL) : Free Stock Analysis Report

Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report

Raytheon Technologies Corporation (RTX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research