Teledyne Technologies Earnings: Here’s Why Investors Like These Results

Teledyne Technologies Inc. (NYSE:TDY) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.05%.

Teledyne Technologies Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.6% to $1.13 in the quarter versus EPS of $1.06 in the year-earlier quarter.

Revenue: Rose 15.91% to $601 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Teledyne Technologies Inc. reported adjusted EPS income of $1.13 per share. By that measure, the company beat the mean analyst estimate of $1.06. It beat the average revenue estimate of $577.43 million.

Quoting Management: “Quarterly sales were an all-time record and increased 15.9% compared to last year. Due to record sales to commercial and international customers, we also achieved reasonable organic growth of 2.9% in the quarter,” said Robert Mehrabian, chairman, president and chief executive officer. “Largely due to recent acquisitions and charges associated with cost reduction efforts, margins declined compared to last year. However, overall operating margin increased 45 basis points sequentially from the first quarter of 2013. Quarter-end backlog remained over $1.0 billion, and free cash flow of $92.8 million was very strong. Given the challenging global economy, we remain very focused on keeping our cost structure low. Year to date, we have incurred $4.2 million in pretax charges related to severance and facility consolidations, but have been able to cover such costs with increased earnings. Finally, integration of our recent acquisitions is progressing very well. Yesterday, we announced that Teledyne LeCroy demonstrated the world’s first 100 GHz oscilloscope. The ability to capture real-time electronic signals at a bandwidth of over 100 GHz is truly an industry milestone, one of many for Teledyne LeCroy over the years.”

Key Stats (on next page)…

Revenue increased 5.55% from $569.4 million in the previous quarter. EPS increased 5.61% from $1.07 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.14 to a profit $1.15. For the current year, the average estimate has moved up from a profit of $4.42 to a profit of $4.5 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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