A month has passed by for the reason that final earnings report for Teledyne Applied sciences (TDY). Shares have misplaced about 2.7% in that timeframe, underperforming the S&P 500.
Will the latest destructive development proceed main as much as its subsequent earnings launch, or is Teledyne due for a breakout? Earlier than we dive into how buyers and analysts have reacted as of late, let’s take a fast have a look at the newest earnings report in an effort to get a greater deal with on the essential drivers.
Teledyne Applied sciences This autumn Earnings High Estimates, Gross sales Rise Y/Y
Teledyne Applied sciences reported fourth-quarter 2024 adjusted earnings of $5.52 per share, which surpassed the Zacks Consensus Estimate of $5.23 by 5.5%. The underside line additionally improved 1.5% from $5.44 recorded a yr in the past.
The corporate recorded GAAP earnings of $4.20 per share, down 37.8% from the prior-year degree of $6.75.
TDY reported 2024 adjusted earnings of $19.73 per share, which surpassed the Zacks Consensus Estimate of $19.45 by 1.4%. Full-year earnings additionally was larger than the year-ago determine of $19.69 per share.
The year-over-year enchancment within the backside line will be attributed to larger internet gross sales within the fourth quarter than the year-ago reported actuals.
Operational Highlights of TDY
Whole gross sales had been $1.50 billion, which beat the Zacks Consensus Estimate of $1.45 billion by 3.7%. The highest line additionally rose 5.4% from the $1.43 billion reported a yr in the past. This enchancment will be attributed to larger year-over-year gross sales recorded in all of its enterprise segments.
The corporate reported gross sales of $5.67 billion throughout 2024, which surpassed the Zacks consensus estimate of $5.62 billion. The complete-year gross sales additionally was larger than the reported determine of $5.64 billion in 2023.
TDY’s Segmental Efficiency
Instrumentation: Gross sales on this phase elevated 10.1% yr over yr to $368.9 million, pushed by larger gross sales of marine instrumentation, a rise in gross sales of digital check and measurement instrumentation in addition to gross sales of environmental instrumentation.
The adjusted working earnings elevated 11.1% yr over yr to $100.8 million.
Digital Imaging: Quarterly gross sales on this division elevated 2.5% yr over yr to $822.2 million. The rise was attributable to larger gross sales of unmanned air techniques, surveillance techniques and business infrared imaging techniques.
The adjusted working earnings dropped 32.4% yr over yr to $90.8 million.
Aerospace & Protection Electronics: Gross sales on this phase totaled $196.5 million, up 6.8% from the highest line recorded within the prior-year quarter. This enchancment was pushed by larger gross sales of protection electronics.
The adjusted working earnings elevated 12.8% yr over yr to $56.4 million.
Engineered Methods: Revenues on this division improved 11% yr over yr to $114.7 million, pushed by larger gross sales of engineered merchandise, significantly digital manufacturing companies merchandise and power techniques.
This phase’s working earnings dropped 20.3% yr over yr to $9.8 million.
Monetary Situation of TDY
Teledyne’s money and money equivalents totaled $649.8 million as of Dec. 29, 2024, in contrast with $648.3 million as of Dec. 31, 2023. Its long-term debt was $2.65 billion on the finish of the fourth quarter of 2024 in contrast with $2.64 billion as of Dec. 31, 2023.
Cashflow from working actions totaled $1.19 billion throughout 2024 in contrast with $0.84 billion within the prior yr.
Capital expenditure amounted to $29 million within the fourth quarter, down from $40.2 million within the prior-year quarter.
TDY generated free money circulate of $303.4 million, considerably up from $124.2 million within the prior-year quarter.
TDY’s Steering
Teledyne expects to generate adjusted earnings within the band of $4.80-$4.90 per share for the primary quarter of 2025. The Zacks Consensus Estimate for first-quarter earnings is pegged at $5.14, larger than the corporate’s guided vary.
For 2025, Teledyne expects its adjusted earnings to be within the vary of $21.10-$21.50 per share. The Zacks Consensus Estimate for earnings is pegged at $21.62 per share, larger than the corporate’s guided vary.
How Have Estimates Been Shifting Since Then?
Prior to now month, buyers have witnessed a downward development in recent estimates.
VGM Scores
Right now, Teledyne has a median Progress Rating of C, although it’s lagging lots on the Momentum Rating entrance with an F. Nonetheless, the inventory was allotted a grade of C on the worth aspect, placing it within the center 20% for this funding technique.
General, the inventory has an mixture VGM Rating of D. If you happen to aren’t targeted on one technique, this rating is the one you ought to be concerned about.
Outlook
Estimates have been broadly trending downward for the inventory, and the magnitude of those revisions signifies a downward shift. Notably, Teledyne has a Zacks Rank #3 (Maintain). We anticipate an in-line return from the inventory within the subsequent few months.
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Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
