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Teledyne Technologies 8-K Report, Financial Results (Jan 24, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 24, 2024
Period End
January 24, 2024
Security
TDY
In the record · 2016–202610-K1210-Q338-K120

TDY filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 120 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’19Mar ’19
  2. Deal closed8-K · May ’21May ’21
  3. Leadership change8-K · Jan ’23Jan ’23
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed January 24, 2024. Cited figures are marked; the original filing is the authoritative source.

Teledyne Technologies Incorporated (NYSE:TDY) furnished an 8-K under Item 2.02 attaching its press release reporting fourth quarter and full fiscal year 2023 results.

The company reported all-time record orders of $1,519.4 milliona and all-time record sales of $1,425.0 million for the fourth quarter, with fourth quarter net sales of $1,425.0 million versus $1,418.2 million a year earlier. Fourth quarter GAAP diluted earnings per share were $6.75 (non-GAAP $5.44), and full year GAAP diluted EPS was $18.49 (non-GAAP $19.69) on full year sales of $5,635.5 million. Net income attributable to Teledyne for the full year was $885.7 million, compared with $788.6 million for 2022.

Fourth quarter GAAP results were boosted by $102.2 millionb of acquisition-related discrete income tax benefits, and the release notes that the quarter's effective tax rate was negative 27.3%. Management attributed sales growth mainly to marine, medical and aerospace businesses, offsetting headwinds in industrial automation and laboratory instrumentation. Net debt declined to $2,596.6 million at December 31, 2023 from $3,282.5 million a year earlier, and the company repaid approximately $680 million of debt during 2023.

The consolidated leverage ratio improved to 1.9x. For 2024, management guided to full year GAAP diluted EPS of $17.15 to $17.53c and non-GAAP diluted EPS of $20.35 to $20.68, with first quarter 2024 GAAP diluted EPS of $3.73 to $3.86 and non-GAAP of $4.55 to $4.65.

The company expects an annual tax rate of 22.5%d before discrete items. The release also lists risk factors including foreign currency, interest rates, supply chain, defense spending, Boeing 737 MAX production issues and geopolitical conflicts.

02—Key points

Key Highlights

  1. Record fourth quarter orders of $1,519.4 million and record fourth quarter sales of $1,425.0 million, with full year sales of $5,635.5 million.
  2. Fourth quarter GAAP diluted EPS of $6.75 versus $4.74 a year earlier; non-GAAP diluted EPS of $5.44 versus $4.94.
  3. Full year GAAP diluted EPS of $18.49 (record) and non-GAAP diluted EPS of $19.69, with GAAP operating margin of 18.4% and non-GAAP operating margin of 22.0%.
  4. Fourth quarter GAAP results included $102.2 million of acquisition-related discrete income tax benefits, which the release excludes from non-GAAP results.
  5. Net debt fell to $2,596.6 million at December 31, 2023 from $3,282.5 million, and the consolidated leverage ratio improved to 1.9x.
  6. 2024 outlook: full year GAAP diluted EPS of $17.15 to $17.53 and non-GAAP diluted EPS of $20.35 to $20.68.
  7. Digital Imaging fourth quarter operating income declined to $134.3 million from $152.0 million, while Instrumentation operating income rose to $90.7 million from $79.0 million.

03—Questions

Frequently Asked Questions

  1. What were Teledyne's fourth quarter 2023 results?

    Teledyne reported record fourth quarter orders of $1,519.4 million and net sales of $1,425.0 million, up from $1,418.2 million. Net income attributable to Teledyne was $323.1 million, or $6.75 per diluted share, compared with $226.4 million, or $4.74, a year earlier. Non-GAAP diluted EPS was $5.44.

  2. Why was the fourth quarter GAAP net income so high?

    The fourth quarter included $102.2 million of acquisition-related discrete income tax benefits, which contributed to a negative 27.3% effective tax rate for the quarter. The release excludes these benefits from its non-GAAP results.

  3. What did Teledyne guide to for 2024?

    For full year 2024, management expects GAAP diluted EPS of $17.15 to $17.53 and non-GAAP diluted EPS of $20.35 to $20.68. For the first quarter of 2024, it expects GAAP diluted EPS of $3.73 to $3.86 and non-GAAP diluted EPS of $4.55 to $4.65. The annual tax rate is expected to be 22.5% before discrete items.

  4. How much debt did Teledyne reduce in 2023?

    Teledyne repaid approximately $680 million of debt during 2023, including $300.0 million maturing in April 2023. Net debt declined to $2,596.6 million at December 31, 2023 from $3,282.5 million, and the leverage ratio improved to 1.9x.

  5. Which business segments drove results?

    Management credited marine, medical and aerospace businesses for sales growth, which offset headwinds in industrial automation and laboratory instrumentation. Instrumentation operating income rose 14.8% in the fourth quarter, while Digital Imaging operating income fell to $134.3 million from $152.0 million, mainly due to product mix and higher FLIR integration costs.

04—Continue

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