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Will Segmental Performance Aid Teledyne's (TDY) Q4 Earnings?
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Teledyne Technologies Incorporated (TDY - Free Report) is slated to report fourth-quarter and full-year 2023 results on Jan 24 before market open.
Teledyne delivered a four-quarter earnings surprise of 4.68%, on average. The robust sales expansion in three of its business segments is likely to have positively impacted its overall performance in the fourth quarter.
Digital Imaging Sales to Reflect a Bump
The higher sales of X-ray products, infrared imaging detectors and surveillance systems are likely to have resulted in higher revenues for the Digital Imaging segment in the fourth quarter. However, lower sales of micro-electro-mechanical systems and unmanned ground systems might have affected the overall sales performance for this unit.
The Zacks Consensus Estimate for the Digital Imaging segment’s revenues for the fourth quarter is pegged at $812.4 million. This indicates a rise of 0.7% from the revenues reported in the year-ago quarter.
Instrumentation Segment to Witness Growth
The Instrumentation unit’s revenue performance in the fourth quarter of 2023 is likely to have benefited from increased sales of electronic test and measurement systems as well as that of marine instruments. Positive synergies from the Xena acquisition might also have boosted overall results for this segment.
The Zacks Consensus Estimate for the Instrumentation segment’s revenues in the fourth quarter is pegged at $336.8 million. This implies year-over-year growth of 3.3%.
Thanks to rapidly growing commercial air traffic in recent times, solid sales of commercial aerospace products are expected to have bolstered TDY’s Aerospace & Defense Electronics segment’s revenues in the fourth quarter. Also, notable sales of defense products might have aided the overall performance.
The Zacks Consensus Estimate for Aerospace and Defense Electronics’ revenues for the fourth quarter is pegged at $184.5 million. This suggests growth of 3.7% from the revenues reported in the year-ago quarter.
Engineered Systems’ Sales to Remain Strong
The higher sales of energy systems and engineered products are likely to have contributed to Engineered Systems’ revenues.
The Zacks Consensus Estimate for Engineered Systems’ revenues in the fourth quarter is pegged at $111.8 million. This implies growth of 4.1% from the revenues reported in the year-ago quarter.
Projections Suggest Growth
Teledyne is expanding its presence in markets like energy, defense, healthcare etc. The company sells its products to the U.S. government and other commercial customers. In this context, our model suggests growth of 4.2% in the fourth quarter for sales to commercial customers and a decline of 4% for sales to the government.
Teledyne Technologies Incorporated Price and EPS Surprise
With majority of the segments of Teledyne expected to reflect a solid fourth-quarter top line, the company’s overall revenues are expected to have been strong. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $1.45 billion, suggesting growth of 1.9% from the figure reported in the year-ago quarter.
Such a solid revenue growth might have contributed to the company’s quarterly earnings. However, some deterioration in certain end markets, such as industrial automation and laboratory instrumentation, is likely to have had some negative impact on overall bottom-line performance. The Zacks Consensus Estimate for TDY’s fourth-quarter earnings is pegged at $5.06 per share, indicating a 2.4% increase from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Teledyne this time. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat. However, that is not the case here, as given below.
Teledyne has an Earnings ESP of 0.00% and a Zacks Rank #4(Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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:
The Zacks Consensus Estimate for Leidos’ fourth-quarter earnings per share is pegged at $1.73, which indicates a decrease of 5.5% from the prior-year figure. The Zacks Consensus Estimate for LDOS’ sales is pegged at $3.79 billion, suggesting growth of 2.5% from the prior-year reported figure.
Northrop Grumman (NOC - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #3 at present. NOC delivered a four-quarter average earnings surprise of 6.79%.
The Zacks Consensus Estimate for NOC’s fourth-quarter sales is pegged at $10.44 billion, suggesting a rise of 4% from the prior-year reported figure. The Zacks Consensus Estimate for its fourth-quarter earnings implies a decline of 23.3% from the prior-year reported figure.
Spirit AeroSystems Holdings Inc. (SPR - Free Report) has an Earnings ESP of +24.81% and a Zacks Rank #3 at present. The long-term earnings growth rate of SPR is 8.5%.
The Zacks Consensus Estimate for SPR’s fourth-quarter sales is pegged at $1.74 billion, suggesting growth of 31.5% from the prior-year reported figure. The Zacks Consensus Estimate for its fourth-quarter loss per share is pegged at $1.32, suggesting a significant improvement from the prior-year reported loss figure of $1.46.
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Will Segmental Performance Aid Teledyne's (TDY) Q4 Earnings?
Teledyne Technologies Incorporated (TDY - Free Report) is slated to report fourth-quarter and full-year 2023 results on Jan 24 before market open.
Teledyne delivered a four-quarter earnings surprise of 4.68%, on average. The robust sales expansion in three of its business segments is likely to have positively impacted its overall performance in the fourth quarter.
Digital Imaging Sales to Reflect a Bump
The higher sales of X-ray products, infrared imaging detectors and surveillance systems are likely to have resulted in higher revenues for the Digital Imaging segment in the fourth quarter. However, lower sales of micro-electro-mechanical systems and unmanned ground systems might have affected the overall sales performance for this unit.
The Zacks Consensus Estimate for the Digital Imaging segment’s revenues for the fourth quarter is pegged at $812.4 million. This indicates a rise of 0.7% from the revenues reported in the year-ago quarter.
Instrumentation Segment to Witness Growth
The Instrumentation unit’s revenue performance in the fourth quarter of 2023 is likely to have benefited from increased sales of electronic test and measurement systems as well as that of marine instruments. Positive synergies from the Xena acquisition might also have boosted overall results for this segment.
The Zacks Consensus Estimate for the Instrumentation segment’s revenues in the fourth quarter is pegged at $336.8 million. This implies year-over-year growth of 3.3%.
Aerospace & Defense Electronics Holds Growth Potential
Thanks to rapidly growing commercial air traffic in recent times, solid sales of commercial aerospace products are expected to have bolstered TDY’s Aerospace & Defense Electronics segment’s revenues in the fourth quarter. Also, notable sales of defense products might have aided the overall performance.
The Zacks Consensus Estimate for Aerospace and Defense Electronics’ revenues for the fourth quarter is pegged at $184.5 million. This suggests growth of 3.7% from the revenues reported in the year-ago quarter.
Engineered Systems’ Sales to Remain Strong
The higher sales of energy systems and engineered products are likely to have contributed to Engineered Systems’ revenues.
The Zacks Consensus Estimate for Engineered Systems’ revenues in the fourth quarter is pegged at $111.8 million. This implies growth of 4.1% from the revenues reported in the year-ago quarter.
Projections Suggest Growth
Teledyne is expanding its presence in markets like energy, defense, healthcare etc. The company sells its products to the U.S. government and other commercial customers. In this context, our model suggests growth of 4.2% in the fourth quarter for sales to commercial customers and a decline of 4% for sales to the government.
Teledyne Technologies Incorporated Price and EPS Surprise
Teledyne Technologies Incorporated price-eps-surprise | Teledyne Technologies Incorporated Quote
Q4 Estimates
With majority of the segments of Teledyne expected to reflect a solid fourth-quarter top line, the company’s overall revenues are expected to have been strong. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $1.45 billion, suggesting growth of 1.9% from the figure reported in the year-ago quarter.
Such a solid revenue growth might have contributed to the company’s quarterly earnings. However, some deterioration in certain end markets, such as industrial automation and laboratory instrumentation, is likely to have had some negative impact on overall bottom-line performance. The Zacks Consensus Estimate for TDY’s fourth-quarter earnings is pegged at $5.06 per share, indicating a 2.4% increase from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Teledyne this time. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat. However, that is not the case here, as given below.
Teledyne has an Earnings ESP of 0.00% and a Zacks Rank #4(Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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:
Leidos Holdings Inc. (LDOS - Free Report) has an Earnings ESP of +1.88% and a Zacks Rank #2 at present. The long-term earnings growth rate of LDOS is 8.10%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Leidos’ fourth-quarter earnings per share is pegged at $1.73, which indicates a decrease of 5.5% from the prior-year figure. The Zacks Consensus Estimate for LDOS’ sales is pegged at $3.79 billion, suggesting growth of 2.5% from the prior-year reported figure.
Northrop Grumman (NOC - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #3 at present. NOC delivered a four-quarter average earnings surprise of 6.79%.
The Zacks Consensus Estimate for NOC’s fourth-quarter sales is pegged at $10.44 billion, suggesting a rise of 4% from the prior-year reported figure. The Zacks Consensus Estimate for its fourth-quarter earnings implies a decline of 23.3% from the prior-year reported figure.
Spirit AeroSystems Holdings Inc. (SPR - Free Report) has an Earnings ESP of +24.81% and a Zacks Rank #3 at present. The long-term earnings growth rate of SPR is 8.5%.
The Zacks Consensus Estimate for SPR’s fourth-quarter sales is pegged at $1.74 billion, suggesting growth of 31.5% from the prior-year reported figure. The Zacks Consensus Estimate for its fourth-quarter loss per share is pegged at $1.32, suggesting a significant improvement from the prior-year reported loss figure of $1.46.
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