Back to top

Image: Bigstock

What Awaits Teledyne Technologies (TDY) in Q1 Earnings?

Read MoreHide Full Article

Teledyne Technologies, Inc. (TDY - Free Report) is scheduled to release first-quarter 2021 results on Apr 28, before market open.

In the last reported quarter, the company delivered a positive earnings surprise of 1.27%. Moreover, Teledyne has a four-quarter average positive earnings surprise of 8.52%.

Factors Under Consideration

Over the past three quarters, the company's instrumentation, digital imaging, aerospace and defense electronics segments have been witnessing a decline in year-over-year revenues, primarily due to the prolonged and ongoing COVID-19 impacts. We believe this trend to have continued in the first quarter as well, which is also likely to have witnessed temporary declines in surgery and cancer radiotherapy sales and reduced OEM equipment installations. Consequently, such low numbers are likely to have marred the company’s overall top-line performance in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $780 million, indicating a 0.6% slip 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. Moreover, as overall demand for the company's products has been improving, with a gradual recovery observed in the economy, its substantially lower cost structure is expected to have provided operating leverage during the first quarter. This, in turn, might have benefited its bottom-line performance in the first quarter.

As a result, the Zacks Consensus Estimate for first-quarter earnings is pegged at $2.59 per share, implying an increase of 13.6% from the year-earlier quarter’s reported figure.

Further, progress on Teledyne’s pending acquisition of FLIR Systems is likely to be reported during the upcoming earnings call.

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 carries a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Teledyne Technologies Incorporated Price and EPS Surprise

Stocks to Consider

Here are a couple of defense companies you may want to consider, as the Zacks model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

The Boeing Company (BA - Free Report) has an Earnings ESP of +5.55% and a Zacks Rank #3. The company will announce first-quarter 2021 earnings on Apr 28.

Triumph Group, Inc. (TGI - Free Report) has an Earnings ESP of +9.80% and a Zacks Rank #3. The company is expected to announce its fourth-quarter fiscal 2021 results on May 27.

Zacks Top 10 Stocks for 2021

In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?

Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2021 today >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

The Boeing Company (BA) - free report >>

Triumph Group, Inc. (TGI) - free report >>

Teledyne Technologies Incorporated (TDY) - free report >>