Zinger Key Points
- Teledyne Q4 sales grew 5.4% Y/Y to $1.502B, beating estimates, with strong segment performance across all divisions.
- FY24 cash flow $1.11B enabled debt repayments, share buybacks, acquisitions, and low leverage.
- Get Pro-Level Earnings Insights Before the Market Moves
Teledyne Technologies Incorporated TDY shares traded higher on Wednesday after the company reported fourth-quarter results.
The firm reported sales growth of 5.4% year-over-year to $1.502 billion, beating the consensus of $1.451 billion.
In fourth quarter, net sales in Digital Imaging segment stood at $822.2 million (up 2.5% Y/Y), Instrumentation segment at $368.9 million (+10.1% Y/Y), Aerospace and Defense Electronics segment at $196.5 million (up 6.8% Y/Y) and Engineered Systems segment at $114.7 million (+11.0% Y/Y).
Adjusted operating margin remained flat Y/Y at $22.7% in the quarter. Adjusted EPS was $5.52, above the consensus of $5.23.
In FY24, the company had cash from operations of $1.19 billion and a free cash flow of $1.11 billion. Teledyne deployed $1.1 billion for debt repayments, share repurchases and acquisitions in the year.
The company exited the year with cash and equivalents worth $649.8 million.
Outlook: Teledyne expects first-quarter adjusted EPS of $4.80-$4.90 versus the consensus of $5.03.
Teledyne sees FY25 adjusted EPS of $21.10-$21.50 versus the $21.58 estimate. The company expects to spend around $770 million on acquisitions in the first quarter of 2025.
Robert Mehrabian, Executive Chairman stated, “Year-over-year growth accelerated, as our shorter-cycle businesses improved throughout 2024 coupled with strong demand in our longer cycle defense, space, and energy businesses.”
“We successfully closed the Micropac acquisition at the beginning of fiscal 2025, and we expect the completion of the Excelitas carve-out transaction in the first quarter. We begin 2025 optimistic about our performance and business portfolio; nevertheless, we remain vigilant given the strong U.S. dollar and unpredictable geopolitical environment.”
Investors can gain exposure to the stock via Spinnaker ETF Series Tuttle Capital Self Defense Index ETF GUNZ and Virtus ETF Trust II Virtus KAR Mid-Cap ETF KMID.
Price Action: TDY shares are trading higher by 5.86% to $508.55 at the last check Wednesday.
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