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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 2020 results on Jul 22, before market open. In the last reported quarter, the company delivered an earnings surprise of 8.57%.

Moreover, Teledyne has a four-quarter earnings surprise of 10.64%, on average.

Factors at Play

Teledyne has been experiencing some operational challenges in manufacturing and chirping products owing to its policy of maintaining appropriate employee density at the workplace and balancing employee absenteeism in the wake of the novel coronavirus outbreak. It has also been witnessing moderate demand and supply chain issues, which had an approximately $15 million impact on its first-quarter revenues.

Considering the fact that the impacts of the COVID-19 pandemic have intensified since then, the headwinds mentioned above are expected to have magnified for Teledyne in the second quarter. 

Consequently, we remain skeptical about the company’s earnings and revenue performance in the yet-to-be-reported quarter. Moreover, management had earlier projected its sales from commercial aviation market to reflect weak numbers during the second quarter and rest of 2020.

Notably, the Zacks Consensus Estimate for Teledyne’s second-quarter revenues is pegged at $756.6million, which indicates a drop of 3.3% from the year-ago quarter’s reported figure.

The expected revenue decline along with segmental operating margin deterioration is likely to have impacted the company’s second quarter bottom line. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $2.02, which indicates decline of 27.9% from the year-ago quarter’s reported figure.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Teledyne Technologies 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 carries a Zacks Rank #2 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Upcoming Defense Releases

Lockheed Martin (LMT - Free Report) will release its second-quarter 2020 results on Jul 21.

Boeing (BA - Free Report) will release its second-quarter 2020 results on Jul 29.

Northrop Grumman (NOC - Free Report) will release its second-quarter 2020 results on Jul 30.

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