Teledyne Q2 Earnings Beat Estimates, Eyes Acquisitions For Disciplined Capital Deployment

Teledyne Technologies Incorporated TDY reported second-quarter FY23 sales growth of 5.1% year-over-year to $1.425 billion, beating the consensus of $1.410 billion.

Adjusted EPS was $4.67, above the consensus of $4.64.

Sales by segments: Digital Imaging $793.3 million (+2.3% Y/Y), Instrumentation $328.4 million (+5.1% Y/Y), Aerospace and Defense Electronics $186.0 million (+10.2% Y/Y), and Engineered Systems $117.0 million (+18.5%Y/Y).

Net income attributable to Teledyne was $185.3 million, up 8.2% Y/Y. 

The company exited the quarter with cash and equivalents worth $364.2 million. Operating cash flow was $190.5 million for the second quarter, compared with $196.9 million in the year-ago period. 

"We have begun further integration and facility consolidation activities, as we accelerate the relocation of select Teledyne FLIR operations to existing sites. Including continued debt repayment through July, our consolidated leverage ratio declined to 2.1x, and we continue to seek disciplined capital deployment including acquisitions," commented Robert Mehrabian, Chairman, President, and CEO.

Outlook: The company expects Q3 non-GAAP EPS of $4.70-$4.80 (consensus: $4.77)

The company reiterated its non-GAAP EPS of $19.00-$19.20 for FY23 (consensus: $19.13).

Price Action: TDY shares are trading lower by 4.09% at $397.75 on the last check Wednesday.