Teledyne Technologies (TDY) Tops Q4 EPS by 37c, Revenues Beat; Offers 1Q EPS Guidance Below Consensus, FY21 EPS Mid-Point Guidance Below Consensus

Teledyne Technologies (NYSE: TDY) reported Q4 EPS of $3.48, $0.37 better than the analyst estimate of $3.11. Revenue for the quarter came in at $809.3 million versus the consensus estimate of $801.5 million.

• Fourth quarter sales of $809.3 million
• All-time record GAAP diluted earnings per share of $3.48, an increase of 13.7% compared with last year
• All-time record GAAP operating margin of 17.8%, an increase of 173 bps from last year
• Record quarterly and full year cash from operations of $236.4 million and $618.9 million, respectively
• Announced pending acquisition of FLIR Systems, Inc. for approximately $8.0 billion
• Issuing full year 2021 diluted earnings per share outlook of $11.25 to $11.45, which does not reflect the pending acquisition of FLIR and related acquisition and financing costs

“We concluded 2020 with the best earnings, operating margin and cash flow in the company’s history,” said Robert Mehrabian, Executive Chairman. “Given record quarterly and full year free cash flow of $217.0 million and $547.5 million, respectively, we ended the year with only $105.4 million of net debt. For over two decades, we have consistently and predictably compounded earnings and cash flow. Nevertheless, I have never been more excited about Teledyne’s future. On the first day of fiscal 2021, we announced the pending acquisition of FLIR for $8.0 billion. Across digital imaging and unmanned systems, FLIR will add uniquely complementary technologies, products, customers and applications to Teledyne’s proven business model.”

GUIDANCE:

Teledyne Technologies sees Q1 2021 EPS of $2.55-$2.60, versus the consensus of $2.61.

Teledyne Technologies sees FY2021 EPS of $11.25-$11.45, versus the consensus of $11.45.

Based on its current outlook, the company’s management believes that first quarter 2021 diluted earnings per share will be in the range of $2.55 to $2.60 and full year 2021 diluted earnings per share will be in the range of $11.25 to $11.45, which does not reflect the pending acquisition of FLIR and related acquisition and financing costs, which cannot be estimated at this time, but are expected to be significant. The company’s annual expected tax rate for 2021 is 22.3%, before discrete items. In addition, we currently expect less discrete tax items in 2021 compared with 2020.

For earnings history and earnings-related data on Teledyne Technologies (TDY) click here.

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