Second-quarter sales for Thousand Oaks-based Teledyne Technologies dipped 5 percent to $743.3 million, and net income beat analyst estimates, sending the stock up 2.5 percent in early trading.

Net income fell around 10 percent compared to the previous year’s second quarter to $93.7 million, or $2.48 per share, squarely beating analyst predictions of around $2 per share on average.

Operating margins increased for the aerospace and defense conglomerate, “despite record economic contraction and a challenging operating environment for manufacturers,” Executive Chairman Robert Mehrabian said in a news release.

“We have aggressively cut costs to protect profitability in our shorter-cycle business, while at the same time continuing margin improvement actions in our operations with strong backlog,” he said.

Sales decreased across each of the company’s segments, including a 20 percent drop in engineered systems. Despite a continued strong market for defense contracts nationally, Teledyne also reported an 18.7 percent drop in revenue from its aerospace and defense electronics business.

“The continued weakness in the commercial aerospace industry has negatively affected sales of aerospace electronics,” the company said in the filing, also referencing reduced sales as a result of the bankruptcy of its joint venture with Airbus OneWeb Satellites.

Digital imaging systems fared somewhat better, declining around 9.3 percent, while instrumentation sales, the company’s largest segment, fell just 1 percent compared to the same period the prior year.

 Shares rose 2.5 percent to $337.98 as of 10 a.m. on July 21, nearly overtaking their price at the beginning of the year.

 The quarter also included $8.6 million in severance, consolidation and acquisition costs, the company said, up from $1.3 million in the same period in 2019. Overall, costs and expenses slimmed by around 2.5 percent to $633.5 million, as the company cut back sales and administrative costs.

 Teledyne ended the quarter June 28 with $382.8 million in cash on hand, nearly twice its cash cushion at the end of the fiscal year six months prior.

 “Much uncertainty remains in 2020, and we do not know the pace of recovery in all of our industrial businesses,” Mehrabian said. “Nevertheless, given our strong execution and lower cost structure, as well as our very healthy balance sheet, we are well-positioned to continue compounding earnings and cash flow for quarters and years to come.”

The company said it expects third quarter earnings per share between $2.25 and $2.45, and a slight decline from record 2019 earnings for the full fiscal year to $9.45 to $10 per share.