01—Abstract
Summary
Summary of the 10-Q filed April 29, 2024. Cited figures are marked; the original filing is the authoritative source.
Teledyne Technologies Incorporated (TDY) reported first-quarter 2024 net sales of $1,350.1 milliona, down 2.4% from $1,383.3 million in the first quarter of 2023.
Operating income was $234.3 millionb, down 3.4% from $242.5 million, and net income attributable to Teledyne was $178.5 million, down 0.1% from $178.7 million. Diluted earnings per share were $3.72, compared with $3.73 a year earlier. Management said its industrial automation and test and measurement markets weakened more than planned in the quarter and now forecasts full-year 2024 sales for products in those markets to decline meaningfully.
Digital Imaging sales fell 4.1% and Engineered Systems fell 10.5%, while Aerospace and Defense Electronics rose 7.2% and Instrumentation fell 0.9%. Cash and cash equivalents rose to $912.4 millionc from $648.3 million at year-end 2023, and operating cash flow was $291.0 million, compared with $203.0 million. Total debt was $3,246.3 million.
Subsequent to quarter-end, the company made a $450 milliond payment on its April 2024 Senior Notes. On April 23, 2024, the Board authorized a stock repurchase program of up to $1.25 billion, superseding prior programs; no repurchases were made in the first quarter.
The filing also discloses voluntary disclosures to U.S. and non-U.S. export authorities concerning Teledyne FLIR shipments, for which the company could not reasonably estimate the resolution timing or potential loss. Subsequent events include the April 10, 2024 acquisition of Valeport and a pending agreement to acquire Adimec, expected to close in the first half of 2024.
02—Key points
Key Highlights
- Net sales of $1,350.1 million, down 2.4% from $1,383.3 million in the first quarter of 2023.
- Operating income of $234.3 million, down 3.4%; diluted EPS of $3.72 versus $3.73.
- Management now forecasts meaningful full-year 2024 sales declines in industrial automation and test and measurement markets.
- Aerospace and Defense Electronics net sales rose 7.2% and operating income rose 10.4%, while Engineered Systems operating income fell 73.0%.
- Cash and cash equivalents increased to $912.4 million; operating cash flow was $291.0 million versus $203.0 million.
- Board authorized a new stock repurchase program of up to $1.25 billion on April 23, 2024; no repurchases were made in the first quarter.
- Teledyne made a $450 million payment on its April 2024 Senior Notes after quarter-end and acquired Valeport on April 10, 2024.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2024, Teledyne Technologies kept $0.13.
- Revenue$1.35B100.0%
- Cost of revenue−$770.2M57.0%
- Gross profit$579.9M43.0%
- Operating costs−$345.6M25.6%
- Operating income$234.3M17.4%
- Interest, other & tax−$55.8M4.1%
- Net income$178.5M13.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed April 29, 2024Financial Statements
| Revenue | $1.35B |
| Cost of Revenue | $770.20M |
| Gross Profit | $579.90M |
| R&D Expenses | $76.50M |
| SG&A Expenses | $219.70M |
| Operating Expenses | $1.12B |
| Operating Income | $234.30M |
| Interest Expense | $12.70M |
| Net Income | $178.50M |
| EPS (Basic) | $3.77 |
| EPS (Diluted) | $3.72 |
| Shares Outstanding (Basic) | 47.30M |
| Shares Outstanding (Diluted) | 48.00M |
05—Questions
Frequently Asked Questions
How did Teledyne perform in the first quarter of 2024?
Net sales were $1,350.1 million, down 2.4% from $1,383.3 million. Operating income was $234.3 million, down 3.4%, and net income attributable to Teledyne was $178.5 million, down 0.1%. Diluted EPS was $3.72 compared with $3.73.
Which segments drove the results?
Aerospace and Defense Electronics net sales increased 7.2% to $185.7 million and operating income rose 10.4%. Digital Imaging net sales fell 4.1% to $740.8 million, and Engineered Systems net sales fell 10.5% to $93.2 million with operating income down 73.0% to $2.7 million.
What is the outlook for end markets?
The filing states that industrial automation and test and measurement markets weakened more than planned in the first quarter, and the company now forecasts full-year 2024 sales for products in these markets to decline meaningfully.
What capital allocation actions were announced?
On April 23, 2024, the Board authorized a stock repurchase program of up to $1.25 billion with no stated expiration, superseding prior programs. The company also made a $450 million payment on its April 2024 Senior Notes after quarter-end and plans about $100 million of capital expenditures in 2024.
What legal or regulatory matters are disclosed?
Teledyne has made voluntary disclosures to U.S. and non-U.S. export authorities regarding Teledyne FLIR shipments. The company said it is unable to reasonably estimate the time to resolve these matters or the potential loss, and an unfavorable outcome could be material.
06—Continue