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Teledyne (TDY) Beats on Q1 Earnings, Lowers '20 EPS View
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Teledyne Technologies Inc. (TDY - Free Report) reported first-quarter 2020 earnings of $2.28 per share, which surpassed the Zacks Consensus Estimate of $2.10 by 8.6%. The bottom line also improved 12.9% from the year-ago quarter’s $2.02.
The year-over-year bottom-line growth can be attributed to solid sales and an improvement in the operating income in the reported quarter.
Including one-time items, the company reported first-quarter GAAP earnings per diluted share of $2.17, which improved 7.4% from the year-ago quarter’s $2.02.
Operational Highlights
In the quarter under review, total sales amounted to $784.6 million, which missed the Zacks Consensus Estimate of $785 million by a whisker. However, the top line increased 5.3% from $745.2 million a year ago. Except for the Aerospace and Defense Electronics segment, all other segments recorded solid year-over-year sales growth in the first quarter.
Segmental Performance
Instrumentation: Sales at this segment rose 11.2% year over year to $285.1 million in the first quarter. Increased sales of environmental instrumentation, marine instrumentation, and test and measurement instrumentation led to the upside.
Operating income rose 27.3% year over year to $50.8 million on account of increased sales and higher margins across most product lines.
Digital Imaging: Quarterly sales at this division increased 6.2% year over year to $246.7 million. The improvement can be attributed to increased sales of infrared detectors for defense applications, MEMS products and X-ray detectors for life sciences applications, as well as $8.8 million in incremental sales from the 2019 acquisitions.
Operating income grew 19.7% year over year to $43.8 million, backed by higher sales and product mix differences.
Aerospace and Defense Electronics: At this segment, quarterly sales of $156.3 million declined 6.2% from the prior-year quarter owing to decreased sales for aerospace electronics. The weakness in the commercial aerospace industry has affected sales of aerospace electronics in the quarter.
Operating income plunged 58.8% year over year to $13.4 million, driven by lower sales and $8.2 million of severance, facility consolidation and certain contract adjustment costs.
Engineered Systems: Sales at this division grew 7.6% year over year to about $96.5 million in the first quarter. The uptick was driven by higher sales of engineered products and energy systems.
Operating income surged 78.1% to $11.4 million on account of higher sales and improved mix of manufacturing programs.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
Teledyne’s cash and cash equivalents totaled $231.4 million as of Mar 29, 2020, compared with $199.5 million at the end of 2019. Long-term debt summed $749.1 million compared with $750 million at 2019-end.
Cash from operations at the end of the first quarter amounted to $76.4 million compared with $80.1 million at the end of first-quarter 2019.
In the reported quarter, capital expenditures were $20.2 million compared with $21.3 million in the year-ago quarter. Moreover, the company generated free cash flow of $56.2 million compared with $58.8 million in the year-ago quarter.
Guidance
Teledyne expects to generate GAAP earnings per share of $1.90-$2.05 in the second quarter of 2020. For 2020, the company has lowered its earnings expectations from $11.20-$11.30 per share to $9.30-$10.
Currently, the Zacks Consensus Estimate for Teledyne’s full-year earnings is pegged at $9.99 per share, which is toward the higher end of its updated bottom-line expectations.
Zacks Rank
Teledyne currently sports a Zacks Rank #4 (Sell).
A Recent Defense Release
Lockheed Martin Corp. (LMT - Free Report) , a Zacks Rank #2 (Buy) stock, reported first-quarter 2020 earnings of $6.08 per share, which surpassed the Zacks Consensus Estimate of $5.76 by 5.5%. The bottom line also improved 1.5% from the year-ago quarter’s $5.99. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Defense Releases
Northrop Grumman Corp. (NOC - Free Report) , a Zacks Rank #3 (Hold) company, is scheduled to report first-quarter 2020 results on Apr 29.
General Dynamics (GD - Free Report) , a Zacks Rank #3 company, is scheduled to report first-quarter 2020 results on Apr 29.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Teledyne (TDY) Beats on Q1 Earnings, Lowers '20 EPS View
Teledyne Technologies Inc. (TDY - Free Report) reported first-quarter 2020 earnings of $2.28 per share, which surpassed the Zacks Consensus Estimate of $2.10 by 8.6%. The bottom line also improved 12.9% from the year-ago quarter’s $2.02.
The year-over-year bottom-line growth can be attributed to solid sales and an improvement in the operating income in the reported quarter.
Including one-time items, the company reported first-quarter GAAP earnings per diluted share of $2.17, which improved 7.4% from the year-ago quarter’s $2.02.
Operational Highlights
In the quarter under review, total sales amounted to $784.6 million, which missed the Zacks Consensus Estimate of $785 million by a whisker. However, the top line increased 5.3% from $745.2 million a year ago. Except for the Aerospace and Defense Electronics segment, all other segments recorded solid year-over-year sales growth in the first quarter.
Segmental Performance
Instrumentation: Sales at this segment rose 11.2% year over year to $285.1 million in the first quarter. Increased sales of environmental instrumentation, marine instrumentation, and test and measurement instrumentation led to the upside.
Operating income rose 27.3% year over year to $50.8 million on account of increased sales and higher margins across most product lines.
Digital Imaging: Quarterly sales at this division increased 6.2% year over year to $246.7 million. The improvement can be attributed to increased sales of infrared detectors for defense applications, MEMS products and X-ray detectors for life sciences applications, as well as $8.8 million in incremental sales from the 2019 acquisitions.
Operating income grew 19.7% year over year to $43.8 million, backed by higher sales and product mix differences.
Aerospace and Defense Electronics: At this segment, quarterly sales of $156.3 million declined 6.2% from the prior-year quarter owing to decreased sales for aerospace electronics. The weakness in the commercial aerospace industry has affected sales of aerospace electronics in the quarter.
Operating income plunged 58.8% year over year to $13.4 million, driven by lower sales and $8.2 million of severance, facility consolidation and certain contract adjustment costs.
Engineered Systems: Sales at this division grew 7.6% year over year to about $96.5 million in the first quarter. The uptick was driven by higher sales of engineered products and energy systems.
Operating income surged 78.1% to $11.4 million on account of higher sales and improved mix of manufacturing programs.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
Lockheed Martin Corporation price-consensus-eps-surprise-chart | Lockheed Martin Corporation Quote
Financial Condition
Teledyne’s cash and cash equivalents totaled $231.4 million as of Mar 29, 2020, compared with $199.5 million at the end of 2019. Long-term debt summed $749.1 million compared with $750 million at 2019-end.
Cash from operations at the end of the first quarter amounted to $76.4 million compared with $80.1 million at the end of first-quarter 2019.
In the reported quarter, capital expenditures were $20.2 million compared with $21.3 million in the year-ago quarter. Moreover, the company generated free cash flow of $56.2 million compared with $58.8 million in the year-ago quarter.
Guidance
Teledyne expects to generate GAAP earnings per share of $1.90-$2.05 in the second quarter of 2020. For 2020, the company has lowered its earnings expectations from $11.20-$11.30 per share to $9.30-$10.
Currently, the Zacks Consensus Estimate for Teledyne’s full-year earnings is pegged at $9.99 per share, which is toward the higher end of its updated bottom-line expectations.
Zacks Rank
Teledyne currently sports a Zacks Rank #4 (Sell).
A Recent Defense Release
Lockheed Martin Corp. (LMT - Free Report) , a Zacks Rank #2 (Buy) stock, reported first-quarter 2020 earnings of $6.08 per share, which surpassed the Zacks Consensus Estimate of $5.76 by 5.5%. The bottom line also improved 1.5% from the year-ago quarter’s $5.99. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Defense Releases
Northrop Grumman Corp. (NOC - Free Report) , a Zacks Rank #3 (Hold) company, is scheduled to report first-quarter 2020 results on Apr 29.
General Dynamics (GD - Free Report) , a Zacks Rank #3 company, is scheduled to report first-quarter 2020 results on Apr 29.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>