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What Awaits Teledyne Technologies (TDY) in Q3 Earnings?

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Teledyne Technologies Incorporated (TDY - Free Report) is scheduled to report third-quarter 2021 results on Oct 27, 2021 before the market opens.

In the last reported quarter, the company delivered an earnings surprise of 56.80%. Teledyne has a trailing four-quarter earnings surprise of 19.50%, on average.

Factors to Note

In the past couple of quarters, the company’s instrumentation, digital imaging, aerospace and defense electronics segments have witnessed a surge in revenues.This trend is likely tohave continued in the third quarter, as the economy continues to recover. This, in turn, might have favored the to-be-reported quarter’s performance.

TheFLIR acquisition is expected to have benefited the Digital Imaging segment. This is likely to get reflected in the segment’s third-quarter top line.

Increased sales for commercial aerospace products, backed by gradual recovery in the commercial aerospace market of late, may have boosted the Aerospace and Defense Electronics segment’s performance in the quarter to be reported. Stabledefense, space and industrial sales may have also driven the segment’s third-quarter performance.

The Zacks Consensus Estimate for Teledyne’s third-quarter revenues is pegged at $1.29 billion, suggesting growth of 72.7% from the year-ago quarter.

From the cost perspective, Teledyne Technologies has been successful in eliminating certain corporate overheads, consultants and other-third party service providers, which are likely to result in an annualized cost savings of $80 million till 2022. Such cost cutting initiatives mayhave aided the company’s to-be-reported qurter’s performance.

The Zacks Consensus Estimate for third-quarter earnings stands at $3.68 per share, indicating an improvement of 48.4% from the prior-year reported figure.

What the Zacks Model Unveils

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

Stocks to Consider

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

CAE Inc(CAE - Free Report) has an Earnings ESP of +9.46% and a Zacks Rank #3.

Transdigm Group Incorporated(TDG - Free Report) has an Earnings ESP of +0.36% and a Zacks Rank #2.

The Boeing Company(BA - Free Report) has an Earnings ESP of +100.00% and a Zacks Rank #3.

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