Teledyne starts the new year strong with earnings beat
Thousand Oaks-based Teledyne Technologies kicked off the earnings season right here on the Central Coast, delivering an earnings and revenue beat for the first quarter of 2023, the company announced on April 26 before the markets opened.
Teledyne, a technology and defense conglomerate, delivered record revenue results in the first quarter, generating $1.38 billion in sales, beating last year’s number by 4.7%.
This mark also beat analysts’ expectations by about $10 million, according to Zacks Consensus Estimate.
Net income for the company was $178.7 million for the quarter, or $3.73 earnings per share, down nearly 16% from first-quarter results last year.
This was due to a $49.7 million pretax acquired intangible asset amortization expense as well as $0.3 million of acquisition-related discrete income tax expense, according to the company.
Discarding those one-time expenses, Teledyne had a non-GAAP net income of $217.2 million or $4.53 earnings per share, a record amount, beating last year’s mark of $203.9 million or $4.27 earnings per share.
This figure also helped Teledyne beat analysts’ expectations of non-GAAP earnings per share of $4.53.
Despite both analysts’ beats in earnings and revenue, Teledyne closed April 26 down 2.6% with the price closing at $404.91.
“We began 2023 with record first quarter sales, operating margin and non-GAAP earnings. Overall sales increased 4.7% with revenue and operating profit growing in every segment,” Robert Mehrabian, Chairman, President and CEO of Teledyne, said during the company’s earnings call.
Teledyne’s imaging business continues to play a huge role in the company’s growth.
During the first quarter of 2021, Teledyne’s digital imaging segment reached sales worth $772.5 million, a 2.5% growth rate year-over-year while operating income for the segment was $122.2 million for the first quarter of 2023, compared with $115.7 million, an increase of 5.6%.
Teledyne said in its press release that the first-quarter net sales increase resulted primarily from $25 million in incremental sales from recent acquisitions as well as greater sales of industrial and scientific cameras and x-ray detectors, partially offset by lower sales of unmanned ground systems for defense applications.
The company’s other segments also saw growth year-over-year.
Sales for Teledyne’s Instrumentation segment were $333.5 million, compared with $308.9 million, an increase of 8% while operating income was $80.7 million for the first quarter of 2023, compared with $71.6 million, an increase of 12.7%.
Sales in the company’s Aerospace and Defense Electronics segment reached $173.2 million, compared with $166.2 million, an increase of 4.2% while operating income was $47 million for the first quarter of 2023, compared with $42.9 million, an increase of 9.6%.
Finally, Teledyne’s sales in its Engineered Systems segment generated $95.4 million, an increase of 9.1% while perating income was $10 million compared with $9.4 million, an increase of 6.4%.
“Overall, our healthcare-focused imaging businesses achieved all-time record sales and even stronger orders, while our longer-cycle marine, aerospace, and government businesses, collectively, also performed well,” Mehrabian said.
Our shorter-cycle commercial imaging and instruments businesses remained resilient with sales in the majority of product families increasing compared with last year. Supply chain challenges improved and premiums paid for scarce electronic components declined.”
During the first quarter, the company also purchased and closed its acquisition of ChartWorld, which it acquired for an undisclosed amount in January.
Even despite the acquisition, Mehrabian was pleased with the company’s consolidated leverage ratio declining to 2.3x due to “our record first quarter cash flow.”
Following the acquisition of ChartWorld, Teledyne has now purchased three companies in the last nine months.
Teledyne ended the quarter with cash and cash equivalents worth $665.3 million up from $638.1 million in the same quarter a year ago.
