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Teledyne Technologies (TDY) Q3 Earnings Top, '18 EPS View Up
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Teledyne Technologies Inc. (TDY - Free Report) reported adjusted third-quarter 2018 earnings of $2.23 per share, beating the Zacks Consensus Estimate of $2.05 by 8.8%. The bottom line also improved 26% from the year-ago quarter’s figure of $1.77.
Excluding one-time adjustments of $7.3 million, the company reported GAAP earnings of $2.43 per share, reflecting a 27.9% year-over-year improvement from $1.90 in the prior-year quarter.
The year-over-year uptick observed in the quarterly bottom line was driven by impressive sales growth that Teledyne witnessed in the third quarter.
Operational Highlights
In the reported quarter, total sales came in at $725.3 million, which surpassed the Zacks Consensus Estimate of $715 million by 1.6%.
Moreover, the company's sales increased 9.5% from $662.2 a year ago. Notably, all segments registered a solid year-over-year sales growth.
Teledyne Technologies Incorporated Price, Consensus and EPS Surprise
Instrumentation: Sales at this segment increased 10.2% year over year to $256.2 million. The upside was primarily driven by higher sales of test and measurement instrumentation, marine instrumentation and environmental instrumentation.
Operating income advanced 3.2% year over year to $35.7 million from $34.6 million in the year-ago quarter.
Digital Imaging: Quarterly sales at this division rose 13.2% year over year to $223 million. The improvement can be attributed to increased sales of X-ray detectors and generators for life sciences applications and detectors for space-based imaging.
Operating income increased 34.7% year over year to $42.3 million, backed by higher sales and favorable product mix.
Aerospace and Defense Electronics: At this segment, quarterly sales of $171 million increased 7.2% from the prior-year quarter number, courtesy of higher sales of defense electronics.
Operating income improved 18.1% year over year to $33.3 million owing to higher sales and favorable product mix.
Engineered Systems: Sales at this division rose 2.6% year over year to about $75 million in the third quarter. The uptick was driven by higher sales for engineered products and services as well as energy systems products.
Operating income increased 8.1% to $9.3 million on account of sales growth
Financial Condition
Teledyne’s cash totaled $126.1 million as of Sep 30, 2018 compared with $70.9 million at the end of 2017. Long-term debt and capital lease obligations summed $823 million compared with $1,069.3 million at 2017-end.
Cash from operations in the quarter under review amounted to $141.9 million compared with $107.9 million at for the third quarter of 2017.
Capital expenditures in third-quarter 2018 were $20.9 million compared with $15.6 million in the year-ago quarter. During the reported quarter, the company generated free cash flow of $121 million, reflecting a year-over-year growth of 31.1%.
Guidance
Teledyne expects to generate GAAP earnings per share in the range of $2.15-$2.20 and $8.71-$8.76 for fourth-quarter 2018 and 2018, respectively. Notably, the full-year guidance reflects an increase from the company’s outlook of $8.18-$8.28, aniticipated earlier.
Textron (TXT - Free Report) reported third-quarter 2018 adjusted earnings from continuing operations of 61 cents per share, which missed the Zacks Consensus Estimate of 76 cents by 19.7%. The bottom line also decreased 6.2% from 65 cents in the year-ago quarter.
Boeing (BA - Free Report) reported adjusted earnings of $3.58 per share for third-quarter 2018, beating the Zacks Consensus Estimate of $3.45 by 3.8%. The bottom line reflected an improvement of 36.6% from $2.62 in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2018 adjusted earnings of 80 cents per share, which was in line with the Zacks Consensus Estimate. The bottom line increased 12.7% from the prior-year quarter’s figure of 71 cents.
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Teledyne Technologies (TDY) Q3 Earnings Top, '18 EPS View Up
Teledyne Technologies Inc. (TDY - Free Report) reported adjusted third-quarter 2018 earnings of $2.23 per share, beating the Zacks Consensus Estimate of $2.05 by 8.8%. The bottom line also improved 26% from the year-ago quarter’s figure of $1.77.
Excluding one-time adjustments of $7.3 million, the company reported GAAP earnings of $2.43 per share, reflecting a 27.9% year-over-year improvement from $1.90 in the prior-year quarter.
The year-over-year uptick observed in the quarterly bottom line was driven by impressive sales growth that Teledyne witnessed in the third quarter.
Operational Highlights
In the reported quarter, total sales came in at $725.3 million, which surpassed the Zacks Consensus Estimate of $715 million by 1.6%.
Moreover, the company's sales increased 9.5% from $662.2 a year ago. Notably, all segments registered a solid year-over-year sales growth.
Teledyne Technologies Incorporated Price, Consensus and EPS Surprise
Teledyne Technologies Incorporated Price, Consensus and EPS Surprise | Teledyne Technologies Incorporated Quote
Segmental Performance
Instrumentation: Sales at this segment increased 10.2% year over year to $256.2 million. The upside was primarily driven by higher sales of test and measurement instrumentation, marine instrumentation and environmental instrumentation.
Operating income advanced 3.2% year over year to $35.7 million from $34.6 million in the year-ago quarter.
Digital Imaging: Quarterly sales at this division rose 13.2% year over year to $223 million. The improvement can be attributed to increased sales of X-ray detectors and generators for life sciences applications and detectors for space-based imaging.
Operating income increased 34.7% year over year to $42.3 million, backed by higher sales and favorable product mix.
Aerospace and Defense Electronics: At this segment, quarterly sales of $171 million increased 7.2% from the prior-year quarter number, courtesy of higher sales of defense electronics.
Operating income improved 18.1% year over year to $33.3 million owing to higher sales and favorable product mix.
Engineered Systems: Sales at this division rose 2.6% year over year to about $75 million in the third quarter. The uptick was driven by higher sales for engineered products and services as well as energy systems products.
Operating income increased 8.1% to $9.3 million on account of sales growth
Financial Condition
Teledyne’s cash totaled $126.1 million as of Sep 30, 2018 compared with $70.9 million at the end of 2017. Long-term debt and capital lease obligations summed $823 million compared with $1,069.3 million at 2017-end.
Cash from operations in the quarter under review amounted to $141.9 million compared with $107.9 million at for the third quarter of 2017.
Capital expenditures in third-quarter 2018 were $20.9 million compared with $15.6 million in the year-ago quarter. During the reported quarter, the company generated free cash flow of $121 million, reflecting a year-over-year growth of 31.1%.
Guidance
Teledyne expects to generate GAAP earnings per share in the range of $2.15-$2.20 and $8.71-$8.76 for fourth-quarter 2018 and 2018, respectively. Notably, the full-year guidance reflects an increase from the company’s outlook of $8.18-$8.28, aniticipated earlier.
Zacks Rank
Teledyne 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
Textron (TXT - Free Report) reported third-quarter 2018 adjusted earnings from continuing operations of 61 cents per share, which missed the Zacks Consensus Estimate of 76 cents by 19.7%. The bottom line also decreased 6.2% from 65 cents in the year-ago quarter.
Boeing (BA - Free Report) reported adjusted earnings of $3.58 per share for third-quarter 2018, beating the Zacks Consensus Estimate of $3.45 by 3.8%. The bottom line reflected an improvement of 36.6% from $2.62 in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2018 adjusted earnings of 80 cents per share, which was in line with the Zacks Consensus Estimate. The bottom line increased 12.7% from the prior-year quarter’s figure of 71 cents.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>