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Teledyne Technologies Inc. (TDY - Free Report) reported fourth-quarter 2022 adjusted earnings of $4.94 per share, which surpassed the Zacks Consensus Estimate of $4.52 by 9.3%. The bottom line improved 8.3% from the year-ago quarter’s $4.56 per share.
Including one-time items, the company reported GAAP earnings of $4.74 per share, which improved 39.8% from the year-ago quarter’s $3.39.
For the full-year 2022, the company reported adjusted earnings of $18.19 per share, which beat the Zacks Consensus Estimate of $17.77 by 2.4%.
Operational Highlights
Total sales in the fourth quarter amounted to $1,418.2 million, which beat the Zacks Consensus Estimate of $1,408 million by 0.7%. The top line improved 3.1% from the $1,375.7 million reported a year ago. All segments recorded higher year-over-year sales in the fourth quarter.
For the full-year 2022, total sales came in at $5,458.6 million, in line with the Zacks Consensus Estimate. Total sales also improved 18.3% year over year.
Teledyne Technologies Incorporated Price, Consensus and EPS Surprise
Instrumentation: Sales in this segment improved 7.9% year over year to $326.2 million in the fourth quarter. Higher sales across all external product lines led to the upside.
The segment’s operating income improved 15.4% year over year to $82.6 million, driven by higher sales and a favorable product mix.
Digital Imaging: Quarterly sales in this division decreased 0.3% year over year to $806.7 million. The decrease was driven by the lower sales of surveillance and unmanned ground systems for defense applications.
Moreover, the segment’s operating income rose 1.9% year over year to $192.1 million due to lower inventory step-up and acquired intangible amortization expenses in the fourth quarter of 2022.
Aerospace and Defense Electronics: In this segment, sales of $177.9 million went up 8.9% from the prior-year quarter due to the higher sales of aerospace electronics and defense electronics.
The operating income also improved 5.4% year over year to $53 million due to the higher sales of aerospace electronics and improved margins across most defense product categories.
Engineered Systems: Sales in this division increased 6.7% year over year to $107.4 million in the fourth quarter. The increase in sales was mainly due to the higher sales of energy systems and engineered products.
The operating income decreased 17% to $9.3 million, reflecting the impact of lower margins for electronic manufacturing services products.
Financial Condition
Teledyne’s cash and cash equivalents totaled $638.1 million as of Jan 1, 2023 compared with $474.7 million as of Jan 2, 2022. The total long-term debt was $3,620.5 million compared with $4,099.4 million as of Jan 2, 2022.
Its cash provided by operating activities was $486.8 million in 2022 compared with $824.6 million in 2021. In 2022, capital expenditures amounted to $92.6 million, down from $101.6 million in 2021.
Moreover, TDY generated adjusted free cash flow of $690.6 million in 2022, reflecting a 13.1% year-over-year fall.
Guidance
Teledyne expects to generate adjusted earnings in the band of $4.37-$4.47 per share in the first quarter of 2023. The Zacks Consensus Estimate for quarterly earnings, pegged at $4.62, is higher than the midpoint of the guided range.
For 2023, the company expects its earnings in the $19-$19.20 per share range. The Zacks Consensus Estimate of $19.06 per share for 2023 earnings is slightly higher than the midpoint guided range.
Zacks Rank
Teledyne currently carries a Zacks Rank #4 (Sell).
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2022 adjusted earnings of $7.79 per share, which surpassed the Zacks Consensus Estimate of $7.41 by 5.1%. The bottom line also improved 7.9% year over year.
In the reported quarter, net sales amounted to $19 billion, which surpassed the Zacks Consensus Estimate of $18.25 billion by 4.1%. The top line rose 7.3% from the $17.7 billion reported in the year-ago quarter.
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2022 adjusted earnings per share of $1.27 beat the Zacks Consensus Estimate of $1.24 per share by 2.4%. Moreover, the bottom line improved 18% from the year-ago quarter’s adjusted earnings of $1.08 per share.
For the full-year 2022, the company reported adjusted earnings of $4.78 per share, which came in 12% higher than the year-ago figure of $4.27. The full-year bottom line also surpassed the Zacks Consensus Estimate of $4.76 per share by 0.4%.
Upcoming Q4 Defense Earnings
Northrop Grumman Corporation (NOC - Free Report) is scheduled to report its fourth-quarter and full-year 2022 results on Jan 26 before market open. The Zacks Consensus Estimate for NOC’s fourth-quarter sales is pegged at $9.66 billion, indicating an increase of 11.8% from the prior-year reported figure.
The Zacks Consensus Estimate for Northrop’s fourth-quarter earnings is pegged at $6.60 per share, indicating an increase of 10% from the prior-year reported figure.
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Teledyne Technologies (TDY) Q4 Earnings Beat, Sales Rise Y/Y
Teledyne Technologies Inc. (TDY - Free Report) reported fourth-quarter 2022 adjusted earnings of $4.94 per share, which surpassed the Zacks Consensus Estimate of $4.52 by 9.3%. The bottom line improved 8.3% from the year-ago quarter’s $4.56 per share.
Including one-time items, the company reported GAAP earnings of $4.74 per share, which improved 39.8% from the year-ago quarter’s $3.39.
For the full-year 2022, the company reported adjusted earnings of $18.19 per share, which beat the Zacks Consensus Estimate of $17.77 by 2.4%.
Operational Highlights
Total sales in the fourth quarter amounted to $1,418.2 million, which beat the Zacks Consensus Estimate of $1,408 million by 0.7%. The top line improved 3.1% from the $1,375.7 million reported a year ago. All segments recorded higher year-over-year sales in the fourth quarter.
For the full-year 2022, total sales came in at $5,458.6 million, in line with the Zacks Consensus Estimate. Total sales also improved 18.3% year over year.
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 7.9% year over year to $326.2 million in the fourth quarter. Higher sales across all external product lines led to the upside.
The segment’s operating income improved 15.4% year over year to $82.6 million, driven by higher sales and a favorable product mix.
Digital Imaging: Quarterly sales in this division decreased 0.3% year over year to $806.7 million. The decrease was driven by the lower sales of surveillance and unmanned ground systems for defense applications.
Moreover, the segment’s operating income rose 1.9% year over year to $192.1 million due to lower inventory step-up and acquired intangible amortization expenses in the fourth quarter of 2022.
Aerospace and Defense Electronics: In this segment, sales of $177.9 million went up 8.9% from the prior-year quarter due to the higher sales of aerospace electronics and defense electronics.
The operating income also improved 5.4% year over year to $53 million due to the higher sales of aerospace electronics and improved margins across most defense product categories.
Engineered Systems: Sales in this division increased 6.7% year over year to $107.4 million in the fourth quarter. The increase in sales was mainly due to the higher sales of energy systems and engineered products.
The operating income decreased 17% to $9.3 million, reflecting the impact of lower margins for electronic manufacturing services products.
Financial Condition
Teledyne’s cash and cash equivalents totaled $638.1 million as of Jan 1, 2023 compared with $474.7 million as of Jan 2, 2022. The total long-term debt was $3,620.5 million compared with $4,099.4 million as of Jan 2, 2022.
Its cash provided by operating activities was $486.8 million in 2022 compared with $824.6 million in 2021. In 2022, capital expenditures amounted to $92.6 million, down from $101.6 million in 2021.
Moreover, TDY generated adjusted free cash flow of $690.6 million in 2022, reflecting a 13.1% year-over-year fall.
Guidance
Teledyne expects to generate adjusted earnings in the band of $4.37-$4.47 per share in the first quarter of 2023. The Zacks Consensus Estimate for quarterly earnings, pegged at $4.62, is higher than the midpoint of the guided range.
For 2023, the company expects its earnings in the $19-$19.20 per share range. The Zacks Consensus Estimate of $19.06 per share for 2023 earnings is slightly higher than the midpoint guided range.
Zacks Rank
Teledyne currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2022 adjusted earnings of $7.79 per share, which surpassed the Zacks Consensus Estimate of $7.41 by 5.1%. The bottom line also improved 7.9% year over year.
In the reported quarter, net sales amounted to $19 billion, which surpassed the Zacks Consensus Estimate of $18.25 billion by 4.1%. The top line rose 7.3% from the $17.7 billion reported in the year-ago quarter.
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2022 adjusted earnings per share of $1.27 beat the Zacks Consensus Estimate of $1.24 per share by 2.4%. Moreover, the bottom line improved 18% from the year-ago quarter’s adjusted earnings of $1.08 per share.
For the full-year 2022, the company reported adjusted earnings of $4.78 per share, which came in 12% higher than the year-ago figure of $4.27. The full-year bottom line also surpassed the Zacks Consensus Estimate of $4.76 per share by 0.4%.
Upcoming Q4 Defense Earnings
Northrop Grumman Corporation (NOC - Free Report) is scheduled to report its fourth-quarter and full-year 2022 results on Jan 26 before market open. The Zacks Consensus Estimate for NOC’s fourth-quarter sales is pegged at $9.66 billion, indicating an increase of 11.8% from the prior-year reported figure.
The Zacks Consensus Estimate for Northrop’s fourth-quarter earnings is pegged at $6.60 per share, indicating an increase of 10% from the prior-year reported figure.