Teledyne Technologies Inc. TDY reported third-quarter 2019 earnings of $2.84 per share, which surpassed the Zacks Consensus Estimate of $2.53 by 12.3%. The bottom line also improved 16.9% from the year-ago quarter’s $2.43 on solid sales and record improvement in the operating margin.
Total sales in the third quarter amounted to $802.2 million, which exceeded the Zacks Consensus Estimate of $781 million by 2.7%. The top line also rose 10.6% from $725.3 million reported a year ago. Notably, all segments recorded solid year-over-year sales in the quarter.
Instrumentation: Sales at this segment grew 10.4% year over year to $282.9 million in the third quarter. Increased sales of test and measurement instrumentation, and environmental instrumentation led to the upside.
Operating income surged 45.7% year over year to $52 million on account of higher sales and improved margins across most of its product lines.
Digital Imaging: Quarterly sales at this division increased 10.6% year over year to $244 million. The improvement can be attributed to higher sales of X-ray detectors for life sciences applications and aerospace, defense and MEMS products along with a $23.5-million contribution from acquisitions of the scientific imaging businesses of Roper Technologies, Inc and Micralyne Inc.
Operating income declined 2.6% year over year to $41.2 million due to unfavorable product mix.
Aerospace and Defense Electronics: At this segment, quarterly sales of $177.1 million rose 10.5% from the prior-year quarter, owing to increased sales of defense electronics.
Operating income grew 19.7% year over year to $39.5 million, driven by higher sales and improved margins.
Engineered Systems: Sales at this division grew 11.5% year over year to about $98.2 million in the third quarter on higher sales of engineered products and services, and turbine engines.
Operating income rose 10.4% to $10.6 million on account of higher sales.
Teledyne Technologies Incorporated Price, Consensus and EPS Surprise
Teledyne Technologies Incorporated price-consensus-eps-surprise-chart | Teledyne Technologies Incorporated Quote
Teledyne’s cash totaled $128.5 million as of Sep 29, 2019, compared with $142.5 million at the end of 2018. Total long-term debt summed $719.3 million compared with $610.1 million at 2018 end.
Cash provided by operating activities was $150.9 million for the third quarter of 2019 compared with $141.9 million for the third quarter of 2018.
In the reported quarter, capital expenditures amounted to $25.1 million compared with $20.9 million in the year-ago quarter. Moreover, the company generated free cash flow of $125.8 million in the third quarter, reflecting 4% annual growth.
Teledyne expects to generate GAAP earnings of $2.71-$2.76 per share in the fourth quarter of 2019. The Zacks Consensus Estimate for fourth-quarter GAAP earnings is pegged at $2.58, lower than the company’s bottom-line expectations.
For 2019, the company raised its earnings expectations from $9.86-$9.96 to $10.37-$10.42 per share. The Zacks Consensus Estimate for Teledyne’s full-year earnings stands at $9.98, lower than the company’s expectations.
Teledyne carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin Corp. LMT reported third-quarter 2019 earnings of $5.66 per share, which surpassed the Zacks Consensus Estimate of $5.03 by 12.5%. The bottom line also improved 10.1% from $5.14 in the year-ago quarter.
Textron Inc. TXT reported third-quarter 2019 earnings from continuing operations of 95 cents per share, which surpassed the Zacks Consensus Estimate of 85 cents by 11.8%. The bottom line increased 55.7% from the year-ago quarter.
General Dynamics Corporation GD reported third-quarter 2019 earnings from continuing operations of $3.14 per share, which beat the Zacks Consensus Estimate of $3.06 by 2.6%. The bottom line also improved 10.2% from the prior-year quarter’s $2.85.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
General Dynamics Corporation (GD): Free Stock Analysis Report
Teledyne Technologies Incorporated (TDY): Free Stock Analysis Report
Textron Inc. (TXT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.