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Teledyne (TDY) Q2 Earnings Top Estimates, Sales Decline Y/Y
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Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2020 adjusted earnings of $2.43 per share, which surpassed the Zacks Consensus Estimate of $2.01 by 20.9%.
Including one-time items, the company reported second-quarter GAAP earnings per share of $2.48, which declined 11.4% from the year-ago quarter’s $2.80.
The year-over-year bottom-line decline can be attributed to decrease in sales during the reported quarter. However, the quarterly bottom line exceeded the earlier announced GAAP earnings guidance range of $1.90-$2.05.
Operational Highlights
In the quarter under review, total sales amounted to $743.3 million, which missed the Zacks Consensus Estimate of $743.7 million by a whisker. The top line declined 4.9% from $782 million in the year-ago quarter. Except for the Engineered Systems segment, all other segments recorded year-over-year sales decline in the second quarter.
Teledyne Technologies Incorporated Price, Consensus and EPS Surprise
Instrumentation: Sales at this segment slipped 0.4% year over year to $263.1 million in the second quarter, owing to lower sales from marine instrumentation and test and measurement instrumentation.
Operating income fell 1% year over year to $48.5 million on account of increased severance and facility consolidation costs.
Digital Imaging: Quarterly sales at this division declined 4.3% year over year to $237.6 million. The deterioration can be attributed to lower sales of X-ray products for dental and medical applications and geospatial imaging products.
Operating income decreased 9.3% year over year to $46.8 million on account of lower sales.
Aerospace and Defense Electronics: At this segment, quarterly sales of $143.1 million declined18.7% from the prior-year quarter owing to decreased sales for aerospace electronics as well as defense and space electronics.
Operating income plunged 54.7% year over year to $17.5 million due to lower sales and higher severance and facility consolidation costs.
Engineered Systems: Sales at this division grew 6.4% year over year to about $99.5 million in the second quarter. The uptick was driven by higher sales of engineered products and turbine engines.
Operating income rose 20% to $10.8 million on account of higher sales and improved mix of manufacturing programs.
Financial Condition
Teledyne’s cash and cash equivalents totaled $382.8 million as of Jun 28, 2020, compared with $199.5 million at the end of 2019. Long-term debt was $750.8 million compared with $750 million at 2019-end.
Cash from operations at the end of the second quarter amounted to $155.8 million compared with $83.2 million at the end of second-quarter 2019. In the reported quarter, capital expenditures were $16.6 million compared with $18.1 million in the year-ago quarter. Moreover, the company generated free cash flow of $139.2 million compared with $65.1 million in the year-ago quarter.
Guidance
Teledyne expects to generate GAAP earnings per share in the range of $2.25-$2.45 in the third quarter of 2020. Currently, the Zacks Consensus Estimate for Teledyne’s third-quarter earnings is pegged at $2.43 per share, which lies near the higher end of its bottom-line expectations.
For 2020, the company has raised the lower end of its earlier expected earnings guidance range. Notably, Teledyne currently expects to generate earnings in the range of $9.45-$10 compared with the earlier band of $9.30-$10.
Currently, the Zacks Consensus Estimate for Teledyne’s full-year earnings is pegged at $9.60 per share, which lies below the midpoint of its updated bottom-line expectations.
Boeing (BA - Free Report) will release its results on Jul 29.
General Dynamics (GD - Free Report) will release its results on Jul 29.
A Recent Defense Release
Lockheed Martin (LMT - Free Report) reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
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Teledyne (TDY) Q2 Earnings Top Estimates, Sales Decline Y/Y
Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2020 adjusted earnings of $2.43 per share, which surpassed the Zacks Consensus Estimate of $2.01 by 20.9%.
Including one-time items, the company reported second-quarter GAAP earnings per share of $2.48, which declined 11.4% from the year-ago quarter’s $2.80.
The year-over-year bottom-line decline can be attributed to decrease in sales during the reported quarter. However, the quarterly bottom line exceeded the earlier announced GAAP earnings guidance range of $1.90-$2.05.
Operational Highlights
In the quarter under review, total sales amounted to $743.3 million, which missed the Zacks Consensus Estimate of $743.7 million by a whisker. The top line declined 4.9% from $782 million in the year-ago quarter. Except for the Engineered Systems segment, all other segments recorded year-over-year sales decline in the second 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 at this segment slipped 0.4% year over year to $263.1 million in the second quarter, owing to lower sales from marine instrumentation and test and measurement instrumentation.
Operating income fell 1% year over year to $48.5 million on account of increased severance and facility consolidation costs.
Digital Imaging: Quarterly sales at this division declined 4.3% year over year to $237.6 million. The deterioration can be attributed to lower sales of X-ray products for dental and medical applications and geospatial imaging products.
Operating income decreased 9.3% year over year to $46.8 million on account of lower sales.
Aerospace and Defense Electronics: At this segment, quarterly sales of $143.1 million declined18.7% from the prior-year quarter owing to decreased sales for aerospace electronics as well as defense and space electronics.
Operating income plunged 54.7% year over year to $17.5 million due to lower sales and higher severance and facility consolidation costs.
Engineered Systems: Sales at this division grew 6.4% year over year to about $99.5 million in the second quarter. The uptick was driven by higher sales of engineered products and turbine engines.
Operating income rose 20% to $10.8 million on account of higher sales and improved mix of manufacturing programs.
Financial Condition
Teledyne’s cash and cash equivalents totaled $382.8 million as of Jun 28, 2020, compared with $199.5 million at the end of 2019. Long-term debt was $750.8 million compared with $750 million at 2019-end.
Cash from operations at the end of the second quarter amounted to $155.8 million compared with $83.2 million at the end of second-quarter 2019.
In the reported quarter, capital expenditures were $16.6 million compared with $18.1 million in the year-ago quarter. Moreover, the company generated free cash flow of $139.2 million compared with $65.1 million in the year-ago quarter.
Guidance
Teledyne expects to generate GAAP earnings per share in the range of $2.25-$2.45 in the third quarter of 2020. Currently, the Zacks Consensus Estimate for Teledyne’s third-quarter earnings is pegged at $2.43 per share, which lies near the higher end of its bottom-line expectations.
For 2020, the company has raised the lower end of its earlier expected earnings guidance range. Notably, Teledyne currently expects to generate earnings in the range of $9.45-$10 compared with the earlier band of $9.30-$10.
Currently, the Zacks Consensus Estimate for Teledyne’s full-year earnings is pegged at $9.60 per share, which lies below the midpoint of its updated bottom-line expectations.
Zacks Rank
Teledyne currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Q2 Defense Releases
Boeing (BA - Free Report) will release its results on Jul 29.
General Dynamics (GD - Free Report) will release its results on Jul 29.
A Recent Defense Release
Lockheed Martin (LMT - Free Report) reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>