Financial Data and Key Metrics Changes - The company reported record quarterly sales, non-GAAP earnings per share, and free cash flow, with sales increasing by 6.7% year-over-year and non-GAAP earnings rising by 9.2% [4] - Free cash flow reached a record $314 million, and total new orders also set a quarterly record [4] - The full-year sales outlook was raised from $6.03 billion to $6.06 billion [4][15] Business Line Data and Key Metrics Changes - In the Digital Imaging segment, sales increased by 2.2%, with growth in Teledyne FLIR sales and modest increases in legacy DALSA and E2V businesses [8] - The Instrumentation segment saw a 3.9% increase in total sales, driven by marine instruments and environmental instruments [10] - Aerospace and Defense Electronics segment sales surged by 37.6%, primarily due to acquisitions and organic growth [11] - Engineered Systems segment revenue decreased by 8.1%, but operating margin increased by 30 basis points [11] Market Data and Key Metrics Changes - The company noted that 25% of sales could be affected by the U.S. government shutdown, but overall impact is expected to be minimal [5][6] - Sales to China represented only 4% of total sales, with negligible impact from being designated as an unreliable entity [6] Company Strategy and Development Direction - The company is focusing on defense-related businesses and pursuing significant contract opportunities, despite the current government shutdown [5][12] - There is a strong emphasis on unmanned systems and space-based electronics, with expectations for growth in these areas [12][54] - The company plans to be aggressive in M&A activities while being prudent about valuations [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the company amid market volatility and government shutdown challenges [12] - There is optimism regarding defense spending increases in Europe and the potential for growth in the unmanned systems market [54][55] - The company anticipates a positive outlook for 2026, barring unforeseen global issues [55] Other Important Information - The company ended the quarter with $2.0 billion in net debt, indicating a strong balance sheet [15] - Cash flow from operating activities was $343.1 million, up from $249.8 million in the previous year [14] Q&A Session Summary Question: How did growth progress across various segments? - Management noted a 6.7% overall growth, with marine businesses performing strongly and variations in instrument businesses [20] Question: What is the outlook for digital imaging margins? - Margins are expected to recover, with a target of maintaining last year's margins despite cost reductions [29] Question: Can you provide book-to-bill ratios for major segments? - Digital Imaging had a book-to-bill of 1.12, Instrumentation was 0.9, Aerospace and Defense Electronics was 0.84, and Engineered Systems was over 2 [34][37] Question: What are the potential large contracts in the defense business? - Near-term opportunities exist in unmanned systems, particularly with the U.S. Marine Corps and Army programs [39] Question: How is the company addressing critical minerals availability for sensor products? - Management indicated that while there is some exposure, it is being managed effectively [44] Question: What is the growth potential for the unmanned business? - The unmanned business is expected to grow beyond the current $500 million, with significant demand in aerial, ground, and underwater domains [80] Question: How much of the EPS growth is attributed to M&A versus organic growth? - Most EPS growth is organic, with a small contribution from acquisitions [84]

Cristiano Ronaldo leads a group of ten footballers collectively earning $945 million this season, but as the sun sets on his legendary career, two young stars are stepping into the spotlight. https://t.co/BtymnI3jr9Illustration: Alice Lagarde for Forbes; Photos: Minas Panagiotakis/Stringer, Lampson Yip/Clicks Images, Europa Press Sports, David Ramos via Getty Images ...

With earnings season kicking off, will the results be enough to give investors some clarity as they navigate the market with very limited economic data. With us now, Region's Wealth Management CIO Alan Mcnite and Far Miller and Washington President and CEO Michael Farre, also a CNBC contributor. Gentlemen, it's great to have you on.Michael, I'm going to start with you on this because I was looking at your notes and uh you talk about flashing yellow lights and you say you're very cautiously bullish. What doe ...

Market Outlook & Strategy - Piper Sandler suggests investors should "trade the cycle, not the headlines," implying a focus on underlying economic trends rather than short-term news events [1] - The firm believes the fundamentals of the economy remain a tailwind for equities [3] - Piper Sandler is broadly constructive on the market, citing earnings and the Federal Reserve's easing policies [6] - The firm anticipates a better, broader economy in 2026, driven by lower interest rates, improved housing data, and increased manufacturing activity [8] Trade Tensions & Government Shutdown - The market's reaction to tariff headlines has diminished, and the firm doesn't believe President Trump will disrupt the bull market [5] - Piper Sandler doesn't foresee the government shutdown significantly impacting corporate earnings or lasting long enough to become a major market concern [16][17] AI Theme - Piper Sandler views the AI trend as more of a boom than a bubble, noting that major companies are generating substantial earnings [13][14] - The firm points out that multiple expansion is not the primary driver of returns in the "Magnificent Seven" stocks, as earnings are [14] Investment Opportunities - Piper Sandler highlights that rising unemployment can be a bullish catalyst for equities, contrary to popular belief [19] - The firm recommends early cyclical sectors, financials (banks), homebuilders, and select consumer discretionary areas [20] - Piper Sandler anticipates a broadening of the market into 2026, with potential for laggards to see relative performance [21]

as the government shutdown kind of persists and as Ben was just kind of indicating there feels like tensions are actually only getting kind of worse here what that really does mean for our central bankers for the Fed h how that complicates things for them if they if they don't have the hard data they need Michael they're not getting the government jobs data they're not getting the inflation data what does it mean for them what does it mean for this next meeting >> sure yeah good to be here so there's a lot ...

In the meantime, let's get back to the broader markets and the S&P and the NASDAQ taking a breather from these record highs. Joining at us with his outlook today, Wells Fargo Investment Institute senior global market strategist Scott Ren. Scott, it's good to see you.Um, I am curious though, shortterm, three rejections of 6750 uh since Friday. What's it going to take to push past some of these levels. Well, you know, Carl, at some point we are going to get a few rejections of these higher levels and and I I ...

For more on the AI trade in the markets overall, let's bring in Osan Kan. He is the newish chief equity strategist at Wells Fargo and he is out with his first ever earnings preview note in that role and is kind enough to come on fast money. Are you sure this is where you should on the new rule.So I guess the debate this bubble or not whatever is happening your models you run through all these thousands of models all the time your models show that earnings may actually be better than many think why yeah so w ...

For more on the AI trade in the markets overall, let's bring in Osan Quan. He is the newish chief equity strategist at Wells Fargo and he is out with his first ever earnings preview note in that role and is kind enough to come on fast money. Are you sure this is where you want to congratulations on the new rule.So I guess the debate this bubble or not whatever is happening your models you run through all these thousands of models all the time your models show that earnings may actually be better than many t ...

Dan Greenhouse. He's here with us at Post 9. Good to see you.Um, the market obviously doesn't care much yet. >> Neither do I. >> About what's happening in DC.How do you see things progressing from there. >> I don't think this matter. We was on the other day with Carl and I said, I refuse to play this game.Uh, we've done it. You've been around as long as I have. We've been playing this for 10 years now, 15 years now.And, uh, obviously shutdowns haven't happened every time that the shutdown fight has arisen. ...

Market Trends & Sentiment - Despite anxieties around government shutdowns and trade deals, Nvidia and Micron are at record highs, indicating continued allocation to the AI trade [1] - Tech stocks, particularly big tech in the US, remain attractive to investors seeking solid trades [3] - Optimism surrounding potential Federal Reserve rate cuts is supporting the tech sector [3] - There's a pull from the US into tech stocks in Europe, showing encouraging signs for the European tech sector [4][5] Policy & Geopolitics - US administration policy is a central part of how markets are responding and affecting sentiment [7] - The market's response to policy announcements is more relaxed compared to the beginning of the previous administration [8][9] - The US government may proactively seek stakes in sectors and companies, potentially to enhance competitiveness against countries like China [10] - Taiwan rejects a US demand to bring 50% of semiconductor manufacturing into the United States, impacting trade negotiations and the technology sector [6] Valuation & Risk - High valuations are noted, but it's crucial to focus on earnings season and forward guidance [11][12] - The market is considered overstretched in some areas, but a big collapse is not necessarily expected; consolidation is possible [13] - Positive earnings reports in the coming months and further Federal Reserve interest rate cuts could catalyze another leg higher [13]