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Why Is Teledyne (TDY) Up 0.5% Since Last Earnings Report?
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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 0.5% 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's Q2 Earnings Top Estimates, Revenues Down Y/Y
Teledyne Technologies reported second-quarter 2024 adjusted earnings of $4.58 per share, which surpassed the Zacks Consensus Estimate of $4.49 by 2%. However, the bottom line declined 1.9% from $4.67 recorded in the year-ago quarter.
The company recorded GAAP earnings of $3.77 per share, down 2.6% from the prior-year period’s earnings of $3.87.
Operational Highlights
Total sales were $1.37 billion, which missed the Zacks Consensus Estimate of $1.38 billion by 0.2%. The top line also dropped 3.6% from $1.42 billion reported in the year-ago quarter. This decline can be attributed to lower year-over-year sales recorded in its Digital Imaging and Engineered Systems business segments.
Segmental Performance
Instrumentation: Sales in this segment increased 1.6% year over year to $333.5 million, driven by higher sales of marine instrumentation due to stronger offshore energy and defense markets.
The adjusted operating income increased 6.8% year over year to $90.7 million.
Digital Imaging: Quarterly sales in this division declined 6.8% year over year to $739.4 million. The decrease was due to lower sales of industrial automation imaging systems, X-ray products and commercial infrared imaging systems.
The adjusted operating income dropped 6.1% year over year to $159.9 million.
Aerospace and Defense Electronics: Sales in this segment totaled $194.4 million, up 4.5% from that recorded in the prior-year quarter. The improvement was driven by higher sales of aerospace and defense electronics.
The adjusted operating income increased 7.3% year over year to $57.3 million.
Engineered Systems: Revenues in this division declined 8.7% year over year to $106.8 million due to lower sales of engineered products and energy systems.
This segment's operating income declined 34.8% to $7.5 million.
Financial Condition
Teledyne’s cash and cash equivalents totaled $443.2 million as of Jun 30, 2024 compared with $648.3 million as of Dec 31, 2023. Its long-term debt was $2.65 billion at the end of the second quarter of 2024 compared with $2.64 billion as of Dec 31, 2023.
Cashflow from operating activities totaled $318.7 million at the end of Jun 30, 2024 compared with $190.5 million as of Jun 30, 2023.
Capital expenditure for the second quarter amounted to $17.7 million, down from $27.3 million recorded in the prior-year quarter.
TDY generated free cash flow of $301 million at June 2024-end, highlighting an 84.4% year-over-year increase.
Guidance
Teledyne expects to generate adjusted earnings in the band of $4.90-$5.00 per share for the third quarter of 2024. The Zacks Consensus Estimate for TDY’s third-quarter earnings is pegged at $5.07, higher than the company's guided range.
For 2024, Teledyne still expects its adjusted earnings in the range of $19.25-$19.45 per share. The Zacks Consensus Estimate for earnings is pegged at $19.34 per share, slightly lower than the midpoint of the company’s guidance range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, 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 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 these revisions 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.
Performance of an Industry Player
Teledyne belongs to the Zacks Aerospace - Defense Equipment industry. Another stock from the same industry, Hexcel (HXL - Free Report) , has gained 1.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Hexcel reported revenues of $500.4 million in the last reported quarter, representing a year-over-year change of +10.2%. EPS of $0.60 for the same period compares with $0.50 a year ago.
Hexcel is expected to post earnings of $0.47 per share for the current quarter, representing a year-over-year change of +23.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Hexcel. Also, the stock has a VGM Score of B.
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Why Is Teledyne (TDY) Up 0.5% 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 0.5% 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's Q2 Earnings Top Estimates, Revenues Down Y/Y
Teledyne Technologies reported second-quarter 2024 adjusted earnings of $4.58 per share, which surpassed the Zacks Consensus Estimate of $4.49 by 2%. However, the bottom line declined 1.9% from $4.67 recorded in the year-ago quarter.
The company recorded GAAP earnings of $3.77 per share, down 2.6% from the prior-year period’s earnings of $3.87.
Operational Highlights
Total sales were $1.37 billion, which missed the Zacks Consensus Estimate of $1.38 billion by 0.2%. The top line also dropped 3.6% from $1.42 billion reported in the year-ago quarter. This decline can be attributed to lower year-over-year sales recorded in its Digital Imaging and Engineered Systems business segments.
Segmental Performance
Instrumentation: Sales in this segment increased 1.6% year over year to $333.5 million, driven by higher sales of marine instrumentation due to stronger offshore energy and defense markets.
The adjusted operating income increased 6.8% year over year to $90.7 million.
Digital Imaging: Quarterly sales in this division declined 6.8% year over year to $739.4 million. The decrease was due to lower sales of industrial automation imaging systems, X-ray products and commercial infrared imaging systems.
The adjusted operating income dropped 6.1% year over year to $159.9 million.
Aerospace and Defense Electronics: Sales in this segment totaled $194.4 million, up 4.5% from that recorded in the prior-year quarter. The improvement was driven by higher sales of aerospace and defense electronics.
The adjusted operating income increased 7.3% year over year to $57.3 million.
Engineered Systems: Revenues in this division declined 8.7% year over year to $106.8 million due to lower sales of engineered products and energy systems.
This segment's operating income declined 34.8% to $7.5 million.
Financial Condition
Teledyne’s cash and cash equivalents totaled $443.2 million as of Jun 30, 2024 compared with $648.3 million as of Dec 31, 2023. Its long-term debt was $2.65 billion at the end of the second quarter of 2024 compared with $2.64 billion as of Dec 31, 2023.
Cashflow from operating activities totaled $318.7 million at the end of Jun 30, 2024 compared with $190.5 million as of Jun 30, 2023.
Capital expenditure for the second quarter amounted to $17.7 million, down from $27.3 million recorded in the prior-year quarter.
TDY generated free cash flow of $301 million at June 2024-end, highlighting an 84.4% year-over-year increase.
Guidance
Teledyne expects to generate adjusted earnings in the band of $4.90-$5.00 per share for the third quarter of 2024. The Zacks Consensus Estimate for TDY’s third-quarter earnings is pegged at $5.07, higher than the company's guided range.
For 2024, Teledyne still expects its adjusted earnings in the range of $19.25-$19.45 per share. The Zacks Consensus Estimate for earnings is pegged at $19.34 per share, slightly lower than the midpoint of the company’s guidance range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, 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 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 these revisions 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.
Performance of an Industry Player
Teledyne belongs to the Zacks Aerospace - Defense Equipment industry. Another stock from the same industry, Hexcel (HXL - Free Report) , has gained 1.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Hexcel reported revenues of $500.4 million in the last reported quarter, representing a year-over-year change of +10.2%. EPS of $0.60 for the same period compares with $0.50 a year ago.
Hexcel is expected to post earnings of $0.47 per share for the current quarter, representing a year-over-year change of +23.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Hexcel. Also, the stock has a VGM Score of B.