THOUSAND OAKS, Calif. - April 24, 2024 - Teledyne Technologies Incorporated (NYSE:TDY)
- Orders of $1,433.2 million, an increase of 7.8% compared with last year
- Sales of $1,350.1 million
- First quarter GAAP operating margin of 17.4% and record first quarter non-GAAP operating margin of 21.2%
- GAAP diluted earnings per share of $3.72 and record first quarter non-GAAP diluted earnings per share of $4.55
- Record first quarter cash from operations of $291.0 million and all-time record free cash flow of $275.1 million
- Revising full year 2024 GAAP diluted earnings per share outlook to $16.02 to $16.27, compared with the prior outlook of $17.15 to $17.53, and revising full year 2024 non-GAAP earnings per share outlook to $19.25 to $19.45, compared with the prior outlook of $20.35 to $20.68
- Announced pending acquisition of Adimec Holdings B.V.
- Recently completed acquisition of Valeport on April 10, 2024
- Consolidated Leverage Ratio improved to 1.7x
- Further reduction in gross debt with a $450 million debt maturity payment made after quarter-end on April 1, 2024
- Planned capital deployment to include stock repurchases of approximately $250.0 to $300.0 million under the company's new authorization
Teledyne today reported first quarter 2024 net sales of $1,350.1 million, compared with net sales of $1,383.3 million for the first quarter of 2023, a decrease of 2.4%. Net income attributable to Teledyne was $178.5 million ($3.72 diluted earnings per share) for the first quarter of 2024, compared with $178.7 million ($3.73 diluted earnings per share) for the first quarter of 2023, a decrease of 0.1%. The first quarter of 2024 included $49.4 million of pretax acquired intangible asset amortization expense, $2.2 million of pretax FLIR integration costs and $0.3 million of acquisition related discrete income tax expense. Excluding these items, non-GAAP net income attributable to Teledyne for the first quarter of 2024 was $218.3 million ($4.55 diluted earnings per share). The first quarter of 2023 included $49.7 million of pretax acquired intangible asset amortization expense and $0.3 million of acquisition related discrete income tax expense. Excluding these items, non-GAAP net income attributable to Teledyne for the first quarter of 2023 was $217.2 million ($4.53 diluted earnings per share). Operating margin was 17.4% for the first quarter of 2024, compared with 17.5% for the first quarter of 2023. Excluding the non-GAAP items discussed above, non-GAAP operating margin for the first quarter of 2024 was 21.2%, compared with 21.1% for the first quarter of 2023.
"We achieved record first quarter non-GAAP operating margin, adjusted earnings per share and free cash flow," said Robert Mehrabian, Executive Chairman. "While overall orders remained strong, sales were impacted by deterioration in some of our shorter cycle imaging and instrumentation markets. We had previously assumed no full year sales growth in industrial automation as well as test and measurement markets. However, those markets weakened more than planned in the first quarter, and we now forecast full year sales in those product families to decline meaningfully in 2024. Nevertheless, we believe such sales declines will be offset by our marine, aviation and certain defense businesses resulting in flat full year sales compared with 2023. Despite those anticipated sales reductions in what are among our highest margin businesses, we believe overall operating margin will remain flat. For example, driven by organic growth and strong margin improvement at Teledyne FLIR, we were able to protect first quarter operating margin in the Digital Imaging segment despite a significant year-over-year reduction in sales related to industrial automation. Finally, given our even stronger balance sheet and record free cash flow, we believe it is an opportunistic time to add stock repurchases to our capital deployment plans."
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