Back to top

Image: Bigstock

Teledyne Technologies' Q3 Earnings Top Estimates, Revenues Rise Y/Y

Read MoreHide Full Article

Teledyne Technologies Inc. (TDY - Free Report) reported third-quarter 2024 adjusted earnings of $5.10 per share, which surpassed the Zacks Consensus Estimate of $4.97 by 2.6%. The bottom line also improved 1% from $5.05 recorded a year ago. 

The company recorded GAAP earnings of $5.54 per share, up 33.5% from the prior-year level of $4.15.

The year-over-year improvement in the bottom line can be attributed to higher net sales and operating income in the third quarter than the year-ago reported actuals.

Operational Highlights

Total sales were $1.44 billion, which beat the Zacks Consensus Estimate of $1.42 billion by 1.3%. The top line also rose 2.9% from $1.40 billion reported a year ago. This improvement can be attributed to higher year-over-year sales recorded in its Instrumentation, Aerospace and Defense Electronics as well as Engineered Systems business segments.

Segmental Performance

Instrumentation: Sales in this segment increased 6.3% year over year to $349.8 million, driven by higher sales of marine instrumentation due to stronger offshore energy and defense markets.

The adjusted operating income increased 12.6% year over year to $96.3 million.

Digital Imaging: Quarterly sales in this division fell 1% year over year to $768.4 million. The decrease was due to lower sales of industrial automation imaging systems and X-ray products.

The adjusted operating income dropped 9.1% year over year to $123.9 million.

Aerospace and Defense Electronics: Sales in this segment totaled $200.2 million, up 9.2% from the top line recorded in the prior-year quarter. The improvement was driven by higher sales of aerospace and defense electronics.

The adjusted operating income increased 14% year over year to $56.3 million.

Engineered Systems: Revenues in this division improved 9.4% year over year to $125.1 million, driven by higher sales of engineered products, particularly electronic manufacturing services products, and energy systems.

This segment's operating income improved 18.3% year over year to $12.9 million.

Financial Condition

Teledyne’s cash and cash equivalents totaled $561 million as of Sept. 29, 2024, compared with $648.3 million as of Dec. 31, 2023. Its long-term debt was $2.65 billion at the end of the third quarter of 2024 compared with $2.64 billion as of Dec. 31, 2023.

Cashflow from operating activities totaled $249.8 million compared with $278.2 million in the prior-year quarter.

Capital expenditure amounted to $21.1 million, down from $23 million in the prior-year quarter.

TDY generated free cash flow of $228.7 million, highlighting a 10.4% year-over-year decrease.

Guidance

Teledyne expects to generate adjusted earnings in the band of $5.13-$5.23 per share for the fourth quarter of 2024. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $5.33, higher than the company's guided range.

For 2024, Teledyne now expects its adjusted earnings to be in the range of $19.35-$19.45 per share (compared with the earlier guidance of $19.25-$19.45). The Zacks Consensus Estimate for earnings is pegged at $19.43 per share, higher than the midpoint of the company’s new guided range.

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.

Recent Defense Releases

Hexcel Corporation (HXL - Free Report) reported third-quarter 2024 adjusted earnings of 47 cents per share, which improved 23.7% from the year-ago figure of 38 cents. The bottom line also surpassed the Zacks Consensus Estimate by 2.2%.

In the third quarter, the company’s net sales totaled $456.5 million, which beat the Zacks Consensus Estimate of $456.2 million by 0.1%. The top line also witnessed an improvement of 8.8% from the year-ago quarter’s reported sales of $419.5 million.

Lockheed Martin Corporation (LMT - Free Report) reported third-quarter 2024 adjusted earnings of $6.84 per share, which beat the Zacks Consensus Estimate of $6.47 by 5.7%. The bottom line also rose 1% from the year-ago quarter's recorded figure of $6.77.

Net sales were $17.10 billion, which missed the Zacks Consensus Estimate of $17.28 billion by 1%. The top line, however, increased 1.3% from $16.88 billion reported in the year-ago quarter.

RTX Corporation’s (RTX - Free Report) third-quarter 2024 adjusted earnings per share of $1.45 beat the Zacks Consensus Estimate of $1.33 by 9%. The bottom line also improved 16% from the year-ago level of $1.25.

RTX’s third-quarter sales totaled $20.09 billion, which surpassed the Zacks Consensus Estimate of $19.91 billion by 0.9%. The top line also surged a solid 49.2% from $13.46 billion recorded in the third quarter of 2023.

Published in