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Teledyne (TDY) Up 1.4% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Teledyne Technologies (TDY - Free Report) . Shares have added about 1.4% in that time frame, underperforming 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 its most recent earnings report in order to get a better handle on the important catalysts.
Teledyne Technologies reported fourth-quarter 2023 adjusted earnings of $5.44 per share, which beat the Zacks Consensus Estimate of $5.06 by 7.5%. The bottom line also improved 10.1% from $4.94 recorded in the year-ago quarter.
The company recorded GAAP earnings of $6.75 per share, up 42.4% from the prior-year period’s figure of $4.74.
Teledyne reported 2023 adjusted earnings of $19.69 per share, which beat the Zacks Consensus Estimate of $19.31 by 2%. The bottom line also improved 8.2% from $18.19 recorded in the year-ago quarter.
Operational Highlights
Total sales were $1,425 million, which missed the Zacks Consensus Estimate of $1,445.6 million by 1.4%. The top line, however, grew 0.5% from $1,418.2 million reported in the year-ago quarter.
This improvement can be attributed to higher year-over-year sales recorded across two of its four segments in the fourth quarter, except Digital Imaging and Engineered Systems.
The company generated 2023 total sales of $5.64 billion, which missed the Zacks Consensus Estimate of $5.66 billion by 0.3%. The top line, however, grew 3.2% from $5.46 billion reported in the year-ago quarter.
Segmental Performance
Instrumentation: Sales in this segment improved 2.8% year over year to $335.2 million, driven by higher sales across the marine instrumentation product line.
Adjusted operating income increased 14% year over year to $94.2 million, driven by higher sales and improved product margins.
Digital Imaging: Quarterly sales in this division slipped 0.5% year over year to $802.5 million. The decrease was on account of lower sales of industrial imaging cameras, unmanned air systems, micro-electro-mechanical systems and commercial maritime products.
The adjusted operating income dropped 5.2% year over year to $182.2 million, due to unfavorable product mix as well as higher FLIR integration costs.
Aerospace and Defense Electronics: Sales in this segment totaled $184 million, up 3.4% from that recorded in the prior-year quarter. The improvement was driven by higher sales of aerospace electronics.
Adjusted operating income declined 5.3% year over year to $50.2 million due to unfavorable impact of product mix.
Engineered Systems: Revenues in this division declined 3.8% year over year to $103.3 million, due to lower sales of engineered products.
This segment's operating income improved 32.3% to $12.3 million, driven by a favorable program mix.
Financial Condition
Teledyne’s cash and cash equivalents totaled $648.3 million as of Dec 31, 2023, compared with $638.1 million as of Jan 1, 2023. Total long-term debt was $2,644.8 million compared with $3,620.5 million as of Jan 1, 2023.
Cashflow from operating activities totaled $836.1 million at the end of 2023 compared with $486.8 million in 2022.
Capital expenditure for the fourth quarter amounted to $40.2 million, up from $34.1 million recorded in the prior-year quarter.
TDY generated an adjusted free cash flow of $721.2 million at 2023-end, indicating a 4.4% year-over-year increase.
Guidance
Teledyne expects adjusted earnings in the band of $4.55-$4.65 per share for the first quarter of 2024. The bottom-line estimate is pegged at $4.88, higher than the company's guided range.
For 2024, the company expects adjusted earnings in the range of $20.35-$20.68 per share. The Zacks Consensus Estimate for earnings is pegged at $20.50 per share, lower than the mid-point of the company’s guided range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Teledyne has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Teledyne has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Teledyne (TDY) Up 1.4% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Teledyne Technologies (TDY - Free Report) . Shares have added about 1.4% in that time frame, underperforming 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 its most recent earnings report in order to get a better handle on the important catalysts.
Teledyne Q4 Earnings Beat Estimates, Sales Increase Y/Y
Teledyne Technologies reported fourth-quarter 2023 adjusted earnings of $5.44 per share, which beat the Zacks Consensus Estimate of $5.06 by 7.5%. The bottom line also improved 10.1% from $4.94 recorded in the year-ago quarter.
The company recorded GAAP earnings of $6.75 per share, up 42.4% from the prior-year period’s figure of $4.74.
Teledyne reported 2023 adjusted earnings of $19.69 per share, which beat the Zacks Consensus Estimate of $19.31 by 2%. The bottom line also improved 8.2% from $18.19 recorded in the year-ago quarter.
Operational Highlights
Total sales were $1,425 million, which missed the Zacks Consensus Estimate of $1,445.6 million by 1.4%. The top line, however, grew 0.5% from $1,418.2 million reported in the year-ago quarter.
This improvement can be attributed to higher year-over-year sales recorded across two of its four segments in the fourth quarter, except Digital Imaging and Engineered Systems.
The company generated 2023 total sales of $5.64 billion, which missed the Zacks Consensus Estimate of $5.66 billion by 0.3%. The top line, however, grew 3.2% from $5.46 billion reported in the year-ago quarter.
Segmental Performance
Instrumentation: Sales in this segment improved 2.8% year over year to $335.2 million, driven by higher sales across the marine instrumentation product line.
Adjusted operating income increased 14% year over year to $94.2 million, driven by higher sales and improved product margins.
Digital Imaging: Quarterly sales in this division slipped 0.5% year over year to $802.5 million. The decrease was on account of lower sales of industrial imaging cameras, unmanned air systems, micro-electro-mechanical systems and commercial maritime products.
The adjusted operating income dropped 5.2% year over year to $182.2 million, due to unfavorable product mix as well as higher FLIR integration costs.
Aerospace and Defense Electronics: Sales in this segment totaled $184 million, up 3.4% from that recorded in the prior-year quarter. The improvement was driven by higher sales of aerospace electronics.
Adjusted operating income declined 5.3% year over year to $50.2 million due to unfavorable impact of product mix.
Engineered Systems: Revenues in this division declined 3.8% year over year to $103.3 million, due to lower sales of engineered products.
This segment's operating income improved 32.3% to $12.3 million, driven by a favorable program mix.
Financial Condition
Teledyne’s cash and cash equivalents totaled $648.3 million as of Dec 31, 2023, compared with $638.1 million as of Jan 1, 2023. Total long-term debt was $2,644.8 million compared with $3,620.5 million as of Jan 1, 2023.
Cashflow from operating activities totaled $836.1 million at the end of 2023 compared with $486.8 million in 2022.
Capital expenditure for the fourth quarter amounted to $40.2 million, up from $34.1 million recorded in the prior-year quarter.
TDY generated an adjusted free cash flow of $721.2 million at 2023-end, indicating a 4.4% year-over-year increase.
Guidance
Teledyne expects adjusted earnings in the band of $4.55-$4.65 per share for the first quarter of 2024. The bottom-line estimate is pegged at $4.88, higher than the company's guided range.
For 2024, the company expects adjusted earnings in the range of $20.35-$20.68 per share. The Zacks Consensus Estimate for earnings is pegged at $20.50 per share, lower than the mid-point of the company’s guided range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Teledyne has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Teledyne has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.