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Teledyne Technologies (TDY) Q2 Earnings Beat, Sales Rise Y/Y

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Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2022 adjusted earnings of $4.43 per share, which surpassed the Zacks Consensus Estimate of $4.38 by 1.1%. However, the bottom line declined 3.9% from the year-ago quarter’s $4.61 per share.

Including one-time items, the company reported GAAP earnings of $3.59 per share, which improved a solid 142.6% from the year-ago quarter’s $1.48.

Operational Highlights

Total sales in the second quarter amounted to $1,355.8 million, which exceeded the Zacks Consensus Estimate of $1,352 million by 0.3%. The top line also improved 21% from the $1,121 million reported a year ago. All the segments recorded higher year-over-year sales in the quarter except the Engineered Systems segment.

Segmental Performance

Instrumentation: Sales in this segment improved 7.4% year over year to $312.5 million in the second quarter. Higher sales across all external product lines led to the upside.

The segment’s operating income improved 13.9% year over year to $73.6 million, driven by higher sales and a favorable product mix.

Digital Imaging: Quarterly sales in this division surged 33.9% year over year to $775.8 million. The improvement was driven by incremental net sales from the FLIR acquisition and strong organic sales growth from industrial sensors and cameras and x-ray products.

Moreover, the segment’s operating income rose 39.4% year over year to $117.9 million, driven by contributions from the FLIR acquisition and organic sales growth.

Aerospace and Defense Electronics: In this segment, sales of $168.8 million went up 10.8% from the prior-year quarter due to the higher sales of aerospace electronics and defense electronics.

The operating income also improved 55.3% year over year to $44.1 million due to higher sales and a favorable product mix.

Engineered Systems: Sales in this division increased 0.7% year over year to $98.7 million in the second quarter due to the higher sales of energy systems, partially offset by lower sales for engineered products.

The operating income declined 21.8% to $8.6 million due to decreased sales and lower gross margins for electronic manufacturing services products.

Financial Condition

Teledyne’s cash totaled $278.8 million as of Jul 3, 2022 compared with $474.7 million as of Jan 2, 2022. Total long-term debt was $3,645.7 million compared with $4,099.4 million as of Jan 2, 2022.

Its cash provided by operating activities was $196.9 million in the second quarter of 2022 compared with $211.3 million in the second quarter of 2021.

In the reported quarter, capital expenditures amounted to $20.8 million, in line with the year-ago quarter figure.

Moreover, TDY generated adjusted free cash flow of $176.1 million in the second quarter of 2022, reflecting a 31.5% year-over-year decline.

Guidance

Teledyne expects to generate adjusted earnings in the band of $4.20-$4.35 per share in the third quarter of 2022. The Zacks Consensus Estimate for quarterly earnings, pegged at $4.52, is higher than the guided range.

For 2022, the company tweaked its earnings expectation to the $17.45-$17.70 per share range from the prior guidance in the band of $17.75-$18.00 per share. The Zacks Consensus Estimate of $17.98 per share for 2022 is higher than the guided range.

Zacks Rank

Teledyne currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

Recent Defense Releases

Lockheed Martin (LMT - Free Report) reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. However, the bottom line declined 1.6% year over year.

Lockheed Martin’s top line declined 9.3% from the $17.03 billion reported in the year-ago quarter. LMT ended the second quarter of 2022 (on Jun 26, 2022) with $134.64 billion in the backlog compared with $135.23 billion at the end of the first quarter of 2022.

AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2022 adjusted earnings of 72 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 5.9%. Earnings recorded a solid surge of 53.2% from the year-ago quarter.

AAR generated net sales worth $476.1 million, which improved 8.8% from the $437.6 million recorded in the year-ago quarter. AIR’s cash and cash equivalents amounted to $53.5 million as of May 31, 2022 compared with $51.8 million as of May 31, 2021.

Raytheon Technologies’ (RTX - Free Report) second-quarter 2022 adjusted earnings per share (EPS) of $1.16 beat the Zacks Consensus Estimate of $1.12 by 3.6%. Moreover, the bottom line improved 13% from the year-ago quarter’s adjusted earnings of $1.03.

Raytheon Technologies had cash and cash equivalents of $4,767 million as of Jun 30, 2022 compared with $7,832 million as of Dec 31, 2021. RTX projects 2022 adjusted EPS in the range of $4.60-$4.80.


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