Teledyne Technologies Incorporated (NYSE:TDY) Q1 2024 Earnings Call Transcript April 24, 2024 11:00 AM ET
Company Participants
Jason VanWees - VC
Robert Mehrabian - Executive Chairman
Edwin Roks - CFO
George Bobb - President, COO
Stephen Blackwood - SVP, CFO
Conference Call Participants
Jim Ricchiuti - Needham & Company
Greg Konrad - Jefferies
Joe Giordano - TD Cowen
Andrew Buscaglia - BNP
Noah Poponak - Goldman Sachs
Operator
Ladies and gentlemen, thank you for standing by, and welcome to the Teledyne Q1 2024 Earnings Call. [Operator Instructions]
At this time, I'd like to turn the conference over to your host, Jason VanWees. Please go ahead, sir.
Jason VanWees
Hi. Thank you, and good morning, everyone. This is Jason VanWees, Vice Chairman. I'd like to welcome everyone to Teledyne's First Quarter 2024 Earnings Release Conference Call. We released our earnings earlier this morning before the market opened.
Joining me today are: Teledyne's Executive Chairman, Robert Mehrabian; CEO, Edwin Roks; President and COO, George Bobb; SVP and CFO, Steve Blackwood; and Melanie Cibik, EVP, General Counsel, Chief Compliance Officer and Secretary. After remarks by Robert, Edwin, George and Steve, we will ask for your questions.
However, before we get started, the attorneys have reminded me to tell you that all forward-looking statements made this morning are subject to various assumptions, risks and caveats as noted in the earnings release and their periodic SEC filings. And of course, actual results differ materially. In order to avoid potential selective disclosures, this call is simultaneously being webcast and a replay both by a webcast and dial-in will be available for approximately one month. Here's Robert.
Robert Mehrabian
Thank you, Jason. Good morning, everyone, and thank you for joining our earnings call. Today, we reported record first quarter non-GAAP operating margin, record adjusted earnings per share, and record free cash flow. While overall orders remained strong, sales were impacted by deterioration in some of our short-cycle imaging and instrumentation markets. We have previously assumed no full year sales growth in industrial automation as well as test and measurement markets.
However, those markets weakened more than planned in the first quarter, and we now forecast full-year sales in those product families to decline meaningfully in 2024. Nevertheless, we believe such sales declines will be offset by our marine, aviation and certain defense businesses, resulting in full-year flat sales compared to 2023.
Despite those anticipated sales reductions in what are among our highest margin businesses, we believe overall operating margin will remain flat in '24 versus '23. Within the Digital Imaging segment, year-over-year sales declined due to significantly lower sales of machine vision sensors and cameras related to industrial automation. However, this was partially offset by organic growth and significant margin improvement at Teledyne FLIR, given our unmanned system businesses, growth and the resiliency of our core Infrared Imaging businesses.