Teledyne Technologies Reported Q4 Results, Operating Margins Surprised
Teledyne Technologies Incorporated (NYSE:TDY) reported Q4 results, with EPS coming in 8% above the Street estimates, as operating margins expanded to 21.5% and were largely unphased by higher inflation and supply chain challenges.
Analysts at Berenberg Bank provided their view on the company following the results, highlighting that the FLIR deal integration continues to track well and they believe that it remains an underappreciated factor that should help margins and EPS exceed expectations in 2022.
While sales (8.4% organic growth) were certainly better than expected, the biggest surprise was the company’s resilient margins, despite headlines of worsening inflation and supply chain challenges, particularly in the electronics industry.
| Symbol | Price | %chg |
|---|---|---|
| 006405.KS | 241000 | 0 |
| 006400.KS | 429000 | 0 |
| 6861.T | 70160 | 0 |
| 009155.KS | 73900 | 0 |
Teledyne Technologies Price Target Lifted at Berenberg Bank
Analysts at Berenberg Bank increased their price target on Teledyne Technologies Incorporated (NYSE:TDY) to $570 from $565 as they believe the stock pullback on broader supply chain concerns offers an attractive setup into Q3.
According to the brokerage the recent weak corporate commentary across industrials coupled with FLIR acquisition integration risk has caused the company’s multiple to de-rate since May. However, recent order trends suggest the company’s guidance is quite conservative, in the brokerage view, and the company can even exceed expectations.
The company’s execution track record and unique position as both a supplier and customer in the semis industry also provide the analysts with confidence in its ability to navigate supply challenges.
Analysts at Berenberg Bank believe the market has yet to fully appreciate the TDY/FLIR combination, and they expect the stock to re-rate as synergies materialize and the company de-levers.
