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What Awaits Teledyne Technologies (TDY) in Q2 Earnings?

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Teledyne Technologies, Inc. (TDY - Free Report) is scheduled to release second-quarter 2021 results on Jul 28, before market open. In the last reported quarter, the company delivered an earnings surprise of 16.60%. Teledyne has a four-quarter earnings surprise of 10.53%, on average.

Let’s see how things are shaping up prior to this announcement.

Factors at Play

Gradually improving air traffic statistics are expected to have benefited sales of commercial aerospace products for Teledyne Technologies. This, in turn, can be expected to have favorably contributed to its Aerospace and Defense Electronics segment’s top-line performance. Meanwhile, solid sales from defense and other manufacturing programs as well as electronic manufacturing service products can be estimated to have benefitted revenues for the Engineered Systems segment.

The company's government businesses have been growing and performing well, strongest within its digital imaging segment. The recovery in its short cycle commercial business also continues to unfold well, thereby bolstering overall results.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $1,004 million, indicating a 35.1% surge from the figure reported in the year-ago quarter.

On the cost front, Teledyne has been following an aggressive cost-management initiative over the past few quarters to mitigate the impacts of the pandemic and a similar trend can be expected to have prevailed in the second quarter as well. This, in turn, is likely to have benefited its bottom-line performance in the second quarter.

The Zacks Consensus Estimate for second-quarter earnings is pegged at $2.94 per share, implying an increase of 21% from the year-earlier quarter’s reported figure.

In May, Teledyne completed the acquisition of FLIR Systems, one of the pioneers in thermal imaging, in a deal worth approximately $8.2 billion. We may expect impacts from this transaction to get duly reflected in Teledyne’s second-quarter results.

Teledyne Technologies Incorporated Price and EPS Surprise

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Teledyne this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Teledyne Technologies currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few defense companies you may want to consider, as these have the right combination of elements to post an earnings beat this season:

Leidos Holdings (LDOS - Free Report) has an Earnings ESP of +4.46% and a Zacks Rank #2.

General Dynamics (GD - Free Report) has an Earnings ESP of +1.98% and a Zacks Rank #3.

Lockheed Martin (LMT - Free Report) has an Earnings ESP of +0.92% and a Zacks Rank #3.

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