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Teledyne Technologies Inc. TDY reported first-quarter 2025 adjusted earnings of $4.95 per share, which surpassed the Zacks Consensus Estimate of $4.92 by 0.6%. The bottom line also improved 8.8% from $4.55 recorded in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The company recorded GAAP earnings of $3.99 per share, up 7.3% from the prior-year period’s earnings of $3.72.
The year-over-year improvement in the bottom line can be attributed to higher net sales and operating income in the first quarter than the year-ago quarter’s reported actuals.
Teledyne Technologies Incorporated Price, Consensus and EPS Surprise
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Operational Highlights of TDY
Total sales were $1.45 billion, which beat the Zacks Consensus Estimate of $1.42 billion by 1.9%. The top line also surged 7.4% from $1.35 billion reported in the year-ago quarter. This improvement can be attributed to higher year-over-year sales recorded in all of its business segments.
TDY’s Segmental Performance
Instrumentation: Sales in this segment increased 3.9% year over year to $343.3 million, driven by higher sales of marine instrumentation due to stronger offshore energy and defense markets. An increase in sales of electronic test and measurement instrumentation also contributed to this unit’s sales growth.
The adjusted operating income rose 7.8% year over year to $92.7 million.
Digital Imaging: Quarterly sales in this division increased 2.2% year over year to $757 million. The jump was due to higher sales of commercial infrared imaging components as well as surveillance systems.
The adjusted operating income improved 7.5% year over year to $122.3 million.
Aerospace and Defense Electronics: Sales in this segment totaled $242.5 million, up 30.6% from that recorded in the prior-year quarter. The improvement was driven by higher sales of defense electronics.
The adjusted operating income increased 7.3% year over year to $55.7 million.
Engineered Systems: Revenues in this division rose 14.9% year over year to $107.1 million due to higher sales of engineered products.
This segment's operating income increased 300% to $10.8 million.
Financial Condition of TDY
Teledyne’s cash and cash equivalents totaled $461.5 million as of March 30, 2025 compared with $649.8 million as of Dec. 29, 2024. Its long-term debt was $2.96 billion at the end of the first quarter of 2025 compared with $2.65 billion as of Dec. 29, 2024.
Cash flow from operating activities totaled $242.6 million at the end of March 30, 2025 compared with $291 million as of Dec. 29, 2024.
Capital expenditure for the first quarter amounted to $18 million, up from $15.9 million recorded in the prior-year quarter.
TDY generated free cash flow of $224.6 million, down from $275.1 million in the prior-year quarter.