Teledyne Technologies (TDY) Q3 Earnings Beat, Sales Rise Y/Y
Teledyne Technologies Inc. TDY reported third-quarter 2022 adjusted earnings of $4.54 per share, which surpassed the Zacks Consensus Estimate of $4.30 by 5.6%. The bottom line improved 4.6% from the year-ago quarter’s $4.34 per share.
Including one-time items, the company reported GAAP earnings of $3.74 per share, which improved 33.1% from the year-ago quarter’s $2.81.
Operational Highlights
Total sales in the third quarter amounted to $1,363.3 million, which came in line with the Zacks Consensus Estimate. The top line improved 3.9% from the $1,311.9 million reported a year ago. All segments recorded higher year-over-year sales in the third quarter.
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 6.7% year over year to $306.4 million in the third quarter. Higher sales across all external product lines led to the upside.
The segment’s operating income improved 12.9% year over year to $71.1 million, driven by higher sales and a favorable product mix.
Digital Imaging: Quarterly sales in this division increased 2.3% year over year to $777.9 million. The improvement was driven by the higher sales of industrial and scientific sensors, cameras, X-ray products and commercial infrared imaging solutions.
Moreover, the segment’s operating income rose 40.9% year over year to $133.7 million.
Aerospace and Defense Electronics: In this segment, sales of $169.5 million went up 4.8% from the prior-year quarter due to the higher sales of aerospace electronics and defense electronics.
The operating income also improved 23.4% year over year to $44.3 million due to the higher sales of aerospace electronics and improved margins across most product categories.
Engineered Systems: Sales in this division increased 7.2% year over year to $109.8 million in the third quarter. The operating income increased 3.5% to $11.9 million.
Financial Condition
Teledyne’s cash and cash equivalent totaled $479.3 million as of Oct 2, 2022 compared with $474.7 million as of Jan 2, 2022. The total long-term debt was $3,618.4 million compared with $4,099.4 million as of Jan 2, 2022.
Its cash provided by operating activities was $268.9 million in the third quarter of 2022 compared with $192.8 million in the third quarter of 2021.
In the reported quarter, capital expenditures amounted to $16.7 million, down from $29.2 million in the year-ago quarter figure.
Moreover, TDY generated adjusted free cash flow of $252.2 million in the third quarter of 2022, reflecting a 52.2% year-over-year surge.
Guidance
Teledyne expects to generate adjusted earnings in the band of $4.46-$4.56 per share in the fourth quarter of 2022. The Zacks Consensus Estimate for quarterly earnings, pegged at $4.59, is higher than the guided range.
For 2022, the company increased its earnings expectation to the $17.70-$17.80 per share range from the prior guidance in the band of $17.45-$17.70 per share. The Zacks Consensus Estimate of $17.61 per share for 2022 earnings is lower than the 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 Defense Releases
Lockheed Martin Corporation LMT reported third-quarter 2022 adjusted earnings of $6.87 per share, which surpassed the Zacks Consensus Estimate of $6.58 by 4.4%. The bottom line also improved by 4.1% year over year.
Lockheed Martin’s net sales amounted to $16.58 billion, which rose 3.5% from the year-ago quarter. LMT ended the third quarter of 2022 (on Sep 25, 2022) with $139.71 billion in the backlog compared with $134.64 billion at the end of the second quarter of 2022.
Raytheon Technologies Corporation’s RTX third-quarter 2022 adjusted earnings per share of $1.21 beat the Zacks Consensus Estimate of $1.11 by 9%. However, the bottom line dropped 4% from the year-ago quarter’s adjusted earnings of $1.26.
Raytheon Technologies’ third-quarter sales of $16,951 million missed the Zacks Consensus Estimate of $17,003 million by 0.3%. However, the sales figure rose 5% from the $16,213 million recorded in the year-ago quarter.
Hexcel Corporation HXL reported third-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 32 cents by 3.1%. The bottom line improved massively from the year-ago earnings of 8 cents per share, reflecting growth of a solid 153.8%.
Hexcel’s net sales totaled $364.7 million in the third quarter, which lagged the Zacks Consensus Estimate of $391 million by 6.8%. However, the top line witnessed an improvement of 9.3% from the year-ago quarter’s $333.8 million.
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