Teledyne Slides Post Q2 Results, Lowered FY22 Guidance

Teledyne Slides Post Q2 Results, Lowered FY22 Guidance
  • Teledyne Technologies Inc TDY reported second-quarter FY22 sales growth of 20.9% year-over-year to $1.36 billion, +8.2% on an organic basis, in line with the consensus of $1.36 billion.
  • Adjusted EPS was $4.43, above the consensus of $4.38.
  • Q2 net sales included $167.6 million in incremental net sales from the acquisition of FLIR Systems, Inc.
  • Sales by segments: Digital Imaging $775.8 million (+33.9% Y/Y), Instrumentation $312.5 million (+7.4% Y/Y), Aerospace and Defense Electronics $168.8 million (+10.8% Y/Y), and Engineered Systems $98.7 million (+0.7% Y/Y).
  • Non-GAAP operating income increased by 10.1% Y/Y to $280.8 million, and the margin fell by 205 bps to 20.7%.
  • TDY's quarter-end consolidated leverage ratio declined to 2.5x.
  • Teledyne's cash provided by operating activities was $196.9 million versus $211.3 million a year ago. Adjusted free cash flow was $176.1 million.
  • As of July 3, 2022, net debt was $3.66 billion. It held cash and equivalents of $278.8 million.
  • "We remain highly confident in our balanced and resilient mix of commercial and government businesses across a broad range of geographies and end markets. Finally, having reached our targeted leverage range, we are again pursuing acquisitions and are pleased to have recently completed our first bolt-on acquisition at Teledyne FLIR," commented Robert Mehrabian, Chairman, President, and CEO.
  • Q3 Outlook: The company expects Non-GAAP EPS of $4.20 - $4.35 (vs. consensus of $4.52).
  • FY22 Outlook: The company expects GAAP EPS of $15.13 - $15.45 (prior expectations $15.34 - $15.66).
  • It expects Non-GAAP EPS of $17.45 - $17.70 (vs. consensus of $18.03), compared with the prior view of $17.75 - $18.00.
  • Price Action: TDY shares are trading lower by 7.65% at $369.45 on the last check Wednesday.

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