Teledyne Technologies Incorporated (TDY) Q3 2022 Earnings Call Transcript

Teledyne Technologies Incorporated (NYSE:TDY) Q3 2022 Earnings Conference Call October 26, 2022 11:00 AM ET

Company Participants

Jason VanWees - Vice Chairman

Robert Mehrabian - Chairman, President and Chief Executive Officer

Sue Main - Senior Vice President and Chief Financial Officer

Melanie Cibik - Senior Vice President, General Counsel, Chief Compliance Officer and Secretary

Edwin Roks - Executive Vice President, Teledyne

Conference Call Participants

Greg Konrad - Jefferies

Joe Giordano - Cowen

Elizabeth Grenfell - Bank of America

Jim Ricchiuti - Needham & Company

Andrew Buscaglia - Berenberg

Kristine Liwag - Morgan Stanley

Noah Poponak - Goldman Sachs

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Teledyne Technologies Third Quarter Earnings Conference call. [Operator Instructions] And as a reminder, this call is being recorded. I’d now like to turn the call over to our host, Mr. Jason VanWees. Please go ahead.

Jason VanWees

Good morning, everyone. This is Jason VanWees, Vice Chairman of Teledyne and I’d like to welcome everyone to Teledyne’s third quarter 2022 earnings release conference call. We released our earnings earlier this morning before the market opened.

Joining me today are Teledyne’s Chairman, President and CEO, Robert Mehrabian; Senior Vice President and CFO, Sue Main; SVP, General Counsel, Chief Compliance Officer and Secretary, Melanie Cibik; and also Edwin Roks, Executive VP of Teledyne. After remarks by Robert and Sue, we will ask for your questions.

Of course though, before we get started, 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 our periodic SEC filings. And of course, actual results may differ materially. In order to avoid potential selective disclosures, this call is simultaneously being webcast and a replay both via webcast and dial-in will be available for approximately 1 month. Here is Robert.

Robert Mehrabian

Thank you, Jason. Good morning and thank you for joining our earnings call. I am very pleased with our performance this quarter as well as Teledyne’s long history of navigating challenging markets. Despite the strong dollar, supply chain constraints and inflation, we achieved record third quarter sales, earnings, operating margin and free cash flow. Excluding foreign currency headwind, which negatively impacted third quarter sales growth by approximately 3% or $39 million, core growth in local currency would have been 6.9%. In addition, year-over-year reported sales increased in all segments despite the FX headwind. Non-GAAP earnings of $4.54, was a third quarter record and just shy of our all-time record. And our earnings quality was also very high given our largest effective tax rate in several years.