Teledyne Technologies Q4 Earnings Top Estimates, Sales Rise Y/Y

Core Insights - Teledyne Technologies Inc. (TDY) reported strong fourth-quarter 2024 adjusted earnings of $5.52 per share, exceeding the Zacks Consensus Estimate of $5.23 by 5.5% and showing a 1.5% increase from $5.44 a year ago [1][2] - The company achieved full-year adjusted earnings of $19.73 per share, surpassing the Zacks Consensus Estimate of $19.45 by 1.4% and slightly higher than the previous year's figure of $19.69 [2] Financial Performance - Total sales for the fourth quarter reached $1.50 billion, beating the Zacks Consensus Estimate of $1.45 billion by 3.7% and reflecting a 5.4% increase from $1.43 billion reported a year ago [4] - For the full year 2024, sales amounted to $5.67 billion, exceeding the Zacks consensus estimate of $5.62 billion and higher than the $5.64 billion reported in 2023 [5] Segment Performance - Instrumentation segment sales increased by 10.1% year over year to $368.9 million, with adjusted operating income rising 11.1% to $100.8 million [6] - Digital Imaging sales grew 2.5% year over year to $822.2 million, although adjusted operating income fell 32.4% to $90.8 million [7] - Aerospace & Defense Electronics segment sales totaled $196.5 million, up 6.8% from the prior-year quarter, with adjusted operating income increasing 12.8% to $56.4 million [7][8] - Engineered Systems revenues improved 11% year over year to $114.7 million, but operating income dropped 20.3% to $9.8 million [8] Financial Condition - As of December 29, 2024, Teledyne's cash and cash equivalents totaled $649.8 million, slightly up from $648.3 million a year earlier, while long-term debt increased to $2.65 billion from $2.64 billion [9] - Cash flow from operating activities for 2024 was $1.19 billion, compared to $0.84 billion in the prior year [9] - Capital expenditure in the fourth quarter was $29 million, down from $40.2 million in the prior-year quarter, with free cash flow significantly increasing to $303.4 million from $124.2 million [10] Guidance - For the first quarter of 2025, Teledyne expects adjusted earnings in the range of $4.80-$4.90 per share, while the Zacks Consensus Estimate is higher at $5.14 [11] - For the full year 2025, the company anticipates adjusted earnings between $21.10-$21.50 per share, compared to a Zacks Consensus Estimate of $21.62 [11] Zacks Rank - Teledyne currently holds a Zacks Rank 2 (Buy) [12]