Teledyne Clocks 64% Revenue Growth In Q1, Narrows FY22 Adjusted EPS Outlook

Teledyne Technologies Inc TDY reported first-quarter FY22 sales growth of 64% year-over-year to $1.32 billion, missing the consensus of $1.33 billion.
Q1 net sales included $452.6 million in incremental net sales from the acquisition of FLIR Systems, Inc.
Adjusted EPS improved to $4.27 from $3.19 in 1Q21, beating the consensus of $3.97.
Sales by segments: Digital Imaging $750.5 million (+185% Y/Y), Instrumentation $308.9 million (+7.8% Y/Y), Aerospace and Defense Electronics $166.2 million (+9.9% Y/Y), and Engineered Systems $95.4 million (-8.9% Y/Y).
Non-GAAP operating income increased by 83.6% Y/Y to $277.1 million, and the margin expanded by 225 bps to 21%.
TDY’s quarter-end consolidated leverage ratio declined to 2.8x.
Teledyne's cash used in operating activities was $216.7 million for the quarter, compared with cash generated of $124.9 million a year ago. Adjusted free cash flow was $58.7 million.
At April 3, 2022, net debt was $3.85 billion. It held cash and equivalents of $284.3 million.
Q2 Outlook: The company expects GAAP EPS of $3.44 - $3.55 and Non-GAAP EPS of $4.32 - $4.40 (consensus $4.37).
FY22 Outlook: The company expects GAAP EPS to be $15.34 - $15.66, compared with the prior outlook of $14.10 to $14.55.
It expects the non-GAAP EPS outlook to be $17.75 - $18.00 (consensus $17.95), compared with the prior view of $17.60 - $18.00.
Price Action: TDY shares are trading higher by 0.63% at $465.47 on the last check Wednesday.

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