Stronger US Dollar Takes The Toll - Industrial Conglomerate Teledyne's Sales Up 2.9%, But Misses Estimate

Teledyne Technologies Incorporated TDY reported Q3 FY23 sales growth of 2.9% year-over-year to $1.403 billion, missing the consensus of $1.423 billion.

Adjusted EPS was $5.05, above the consensus of $4.76.

"While sales increased year-over-year, revenue was impacted by a stronger U.S. dollar throughout the third quarter and some deterioration in certain end markets, such as industrial automation and laboratory instrumentation," said Robert Mehrabian, Chairman, President and CEO. 

The Digital Imaging segment's third quarter 2023 net sales were $775.8 million, compared with $777.9 million, a decrease of 0.3%. 

The Instrumentation segment's third quarter 2023 net sales were $329.1 million, compared with $306.4 million, an increase of 7.4%.

The Aerospace and Defense Electronics segment's third quarter 2023 net sales were $183.3 million, compared with $169.5 million, an increase of 8.1%. 

The Engineered Systems segment's third quarter 2023 net sales were $114.3 million, compared with $109.8 million, an increase of 4.1%. 

The company exited the quarter with cash and equivalents worth $508.6 million. 

As of October 1, 2023, net debt was $2.735 billion which is calculated as total debt of $3.244 billion.

Outlook: The company expects Q4 non-GAAP EPS of $4.95-$5.05 versus consensus of $5.17.

The company raised its non-GAAP EPS to $19.20-$19.30 for FY23 versus the consensus of $19.15 (prior view: $19.00-$19.20).

Price Action: TDY shares are trading lower by 3.03% at $374.48 on the last check Wednesday.