Teledyne's Q1 Earnings & Revenues Beat Estimates, Increase Y/Y

Teledyne Technologies Inc. TDY reported first-quarter 2025 adjusted earnings of $4.95 per share, which surpassed the Zacks Consensus Estimate of $4.92 by 0.6%. The bottom line also improved 8.8% from $4.55 recorded in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The company recorded GAAP earnings of $3.99 per share, up 7.3% from the prior-year period’s earnings of $3.72.

The year-over-year improvement in the bottom line can be attributed to higher net sales and operating income in the first quarter than the year-ago quarter’s reported actuals.

Operational Highlights of TDY

Total sales were $1.45 billion, which beat the Zacks Consensus Estimate of $1.42 billion by 1.9%. The top line also surged 7.4% from $1.35 billion reported in the year-ago quarter. This improvement can be attributed to higher year-over-year sales recorded in all of its business segments.

TDY’s Segmental Performance

Instrumentation: Sales in this segment increased 3.9% year over year to $343.3 million, driven by higher sales of marine instrumentation due to stronger offshore energy and defense markets. An increase in sales of electronic test and measurement instrumentation also contributed to this unit’s sales growth.

The adjusted operating income rose 7.8% year over year to $92.7 million.

Digital Imaging: Quarterly sales in this division increased 2.2% year over year to $757 million. The jump was due to higher sales of commercial infrared imaging components as well as surveillance systems.

The adjusted operating income improved 7.5% year over year to $122.3 million.

Aerospace and Defense Electronics: Sales in this segment totaled $242.5 million, up 30.6% from that recorded in the prior-year quarter. The improvement was driven by higher sales of defense electronics.

The adjusted operating income increased 7.3% year over year to $55.7 million.

Engineered Systems: Revenues in this division rose 14.9% year over year to $107.1 million due to higher sales of engineered products.

This segment's operating income increased 300% to $10.8 million.

Financial Condition of TDY

Teledyne’s cash and cash equivalents totaled $461.5 million as of March 30, 2025 compared with $649.8 million as of Dec. 29, 2024. Its long-term debt was $2.96 billion at the end of the first quarter of 2025 compared with $2.65 billion as of Dec. 29, 2024.

Cash flow from operating activities totaled $242.6 million at the end of March 30, 2025 compared with $291 million as of Dec. 29, 2024.

Capital expenditure for the first quarter amounted to $18 million, up from $15.9 million recorded in the prior-year quarter.

TDY generated free cash flow of $224.6 million, down from $275.1 million in the prior-year quarter.

TDY’s Guidance

Teledyne expects to generate adjusted earnings in the band of $4.95-$5.05 per share for the second quarter of 2025. The Zacks Consensus Estimate for TDY’s second-quarter earnings is pegged at $5.20, higher than the company's guided range.

For 2025, Teledyne expects its adjusted earnings to be in the range of $21.10-$21.50 per share. The Zacks Consensus Estimate for earnings is pegged at $21.46 per share, which lies above the midpoint of the company’s guided range.

TDY’s Zacks Rank

Teledyne currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

RTX Corporation RTX reported first-quarter 2025 adjusted earnings per share of $1.47, which beat the Zacks Consensus Estimate of $1.35 by 8.9%. The bottom line also improved 9.7% from the year-ago quarter’s level of $1.34.

RTX’s first-quarter sales totaled $20.31 billion, which surpassed the Zacks Consensus Estimate of $19.71 billion by 3%. The top line also surged a solid 5.2% from $19.31 billion recorded for the first quarter of 2024.

Lockheed Martin Corporation LMT reported first-quarter 2025 earnings of $7.28 per share, which beat the Zacks Consensus Estimate of $6.34 by 14.8%. The bottom line increased 15% from the year-ago quarter's reported figure of $6.33 per share.

Net sales were $17.96 billion, which beat the Zacks Consensus Estimate of $17.76 billion by 1.1%. The top line also increased 4.5% from $17.20 billion reported in the year-ago quarter.

Northrop Grumman Corporation NOC reported first-quarter 2025 adjusted earnings of $6.06 per share, which missed the Zacks Consensus Estimate of $6.21 by 2.4%.

NOC’s total sales of $9.47 billion in the first quarter missed the Zacks Consensus Estimate of $9.91 billion by 4.4%. The top line also declined 6.6% from $10.13 billion reported in the year-ago quarter.

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