We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Teledyne (TDY) Up 1.1% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Teledyne Technologies (TDY - Free Report) . Shares have added about 1.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Teledyne due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Teledyne Technologies 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.
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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Teledyne has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Teledyne has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Teledyne (TDY) Up 1.1% Since Last Earnings Report?
It has been about a month since the last earnings report for Teledyne Technologies (TDY - Free Report) . Shares have added about 1.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Teledyne due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Teledyne Technologies Q4 Earnings Beat, Sales Rise Y/Y
Teledyne Technologies 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.
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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Teledyne has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Teledyne has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.