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Will Solid Segmental Performance Aid Teledyne (TDY) Q1 Earnings?
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Teledyne Technologies Incorporated (TDY - Free Report) is slated to report first-quarter 2024 results on Apr 24, before market open.
Teledyne delivered a four-quarter earnings surprise of 4.24%, on average. The positive sales growth expectation for all of its business segments is likely to have favored TDY’s overall first-quarter performance.
Digital Imaging Sales to Reflect a Bump
Organic sales growth from X-ray products, infrared imaging detectors and surveillance systems, along with positive synergies earned from prior acquisitions, are likely to have boosted revenues for the Digital Imaging segment in the first quarter. However, lower sales of commercial infrared products, micro-electro-mechanical systems (MEMS), as well as unmanned air and ground systems might have affected this unit’s overall sales performance.
The Zacks Consensus Estimate for the Digital Imaging segment’s first-quarter revenues is pegged at $777.9 million. This indicates a rise of 0.7% from the top line reported in the year-ago quarter.
Teledyne Technologies Incorporated Price and EPS Surprise
The Instrumentation unit’s revenue performance in the first quarter is likely to have benefited from strong offshore energy sales, along with solid sales of marine instrumentation. However, lower sales of drug discovery and laboratory instruments, as well as unfavorable sales of analyzers for electronic storage and data center applications, might have had an adverse impact on the unit’s top-line performance.
The Zacks Consensus Estimate for the Instrumentation segment’s first-quarter revenues is pegged at $334 million, implying year-over-year rise of 0.2%.
Thanks to the 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 first quarter. Also, higher sales of defense electronics are likely to have aided this unit’s overall performance.
The Zacks Consensus Estimate for Aerospace and Defense Electronics’ first-quarter revenues is pegged at $181.3 million, implying growth of 4.7% from the top line reported in the year-ago quarter.
Engineered Systems’ Sales to Remain Strong
The higher sales of energy systems and space and electronic manufacturing service programs products are likely to have contributed to Engineered Systems’ revenues.
The Zacks Consensus Estimate for Engineered Systems’ first-quarter revenues is pegged at $107.5 million, implying growth of 3.3% from the top line reported in the year-ago quarter.
Mixed Projections
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 implies year-over-year growth of 11.4% for sales to the government and a decline of 0.2% for sales to its commercial customers.
Q1 Estimates
With all four of Teledyne’s segments expected to report solid first-quarter top-line results, the company’s overall revenues are expected to have been strong. The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.40 billion, implying an improvement of 1.3% from the top line reported in the year-ago quarter.
Such solid revenue growth must have contributed favorably to the company’s quarterly earnings. This, along with favorable operating performance in the majority of its segments, can be projected to have bolstered TDY’s overall bottom-line performance. The Zacks Consensus Estimate for TDY’s first-quarter earnings is pegged at $4.64 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 around. 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 you can see below.
Teledyne has an Earnings ESP of -0.60% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Below are three defense stocks that have the right combination of elements to post an earnings beat this time around.
Huntington Ingalls delivered a four-quarter average earnings surprise of 20.64%. The consensus estimate for first-quarter earnings is pegged at $3.49 per share, while that for sales is pinned at $2.80 billion.
L3Harris Technologies (LHX - Free Report) is scheduled to release first-quarter results on Apr 25. LHX has an Earnings ESP of +0.53% and a Zacks Rank #3 at present.
L3Harris delivered a four-quarter average earnings surprise of 1.53%. The Zacks Consensus Estimate for LHX’s first-quarter earnings is pegged at $2.89 per share, while that for sales is pinned at $5.09 billion.
Northrop Grumman (NOC - Free Report) is slated to report first-quarter results on Apr 25. NOC has an Earnings ESP of +1.65% and a Zacks Rank #3 at present.
NOC delivered a four-quarter average earnings surprise of 5.64%. The consensus mark for NOC’s first-quarter earnings is pegged at $5.83 per share, while that for sales is pinned at $9.77 billion.
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Will Solid Segmental Performance Aid Teledyne (TDY) Q1 Earnings?
Teledyne Technologies Incorporated (TDY - Free Report) is slated to report first-quarter 2024 results on Apr 24, before market open.
Teledyne delivered a four-quarter earnings surprise of 4.24%, on average. The positive sales growth expectation for all of its business segments is likely to have favored TDY’s overall first-quarter performance.
Digital Imaging Sales to Reflect a Bump
Organic sales growth from X-ray products, infrared imaging detectors and surveillance systems, along with positive synergies earned from prior acquisitions, are likely to have boosted revenues for the Digital Imaging segment in the first quarter. However, lower sales of commercial infrared products, micro-electro-mechanical systems (MEMS), as well as unmanned air and ground systems might have affected this unit’s overall sales performance.
The Zacks Consensus Estimate for the Digital Imaging segment’s first-quarter revenues is pegged at $777.9 million. This indicates a rise of 0.7% from the top line reported in the year-ago quarter.
Teledyne Technologies Incorporated Price and EPS Surprise
Teledyne Technologies Incorporated price-eps-surprise | Teledyne Technologies Incorporated Quote
Instrumentation Segment Expected to Rise
The Instrumentation unit’s revenue performance in the first quarter is likely to have benefited from strong offshore energy sales, along with solid sales of marine instrumentation. However, lower sales of drug discovery and laboratory instruments, as well as unfavorable sales of analyzers for electronic storage and data center applications, might have had an adverse impact on the unit’s top-line performance.
The Zacks Consensus Estimate for the Instrumentation segment’s first-quarter revenues is pegged at $334 million, implying year-over-year rise of 0.2%.
Aerospace & Defense Electronics Holds Growth Potential
Thanks to the 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 first quarter. Also, higher sales of defense electronics are likely to have aided this unit’s overall performance.
The Zacks Consensus Estimate for Aerospace and Defense Electronics’ first-quarter revenues is pegged at $181.3 million, implying growth of 4.7% from the top line reported in the year-ago quarter.
Engineered Systems’ Sales to Remain Strong
The higher sales of energy systems and space and electronic manufacturing service programs products are likely to have contributed to Engineered Systems’ revenues.
The Zacks Consensus Estimate for Engineered Systems’ first-quarter revenues is pegged at $107.5 million, implying growth of 3.3% from the top line reported in the year-ago quarter.
Mixed Projections
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 implies year-over-year growth of 11.4% for sales to the government and a decline of 0.2% for sales to its commercial customers.
Q1 Estimates
With all four of Teledyne’s segments expected to report solid first-quarter top-line results, the company’s overall revenues are expected to have been strong. The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.40 billion, implying an improvement of 1.3% from the top line reported in the year-ago quarter.
Such solid revenue growth must have contributed favorably to the company’s quarterly earnings. This, along with favorable operating performance in the majority of its segments, can be projected to have bolstered TDY’s overall bottom-line performance. The Zacks Consensus Estimate for TDY’s first-quarter earnings is pegged at $4.64 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 around. 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 you can see below.
Teledyne has an Earnings ESP of -0.60% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Below are three defense stocks that have the right combination of elements to post an earnings beat this time around.
Huntington Ingalls Industries Inc (HII - Free Report) is slated to release first-quarter results on May 2. HII has an Earnings ESP of +1.39% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Huntington Ingalls delivered a four-quarter average earnings surprise of 20.64%. The consensus estimate for first-quarter earnings is pegged at $3.49 per share, while that for sales is pinned at $2.80 billion.
L3Harris Technologies (LHX - Free Report) is scheduled to release first-quarter results on Apr 25. LHX has an Earnings ESP of +0.53% and a Zacks Rank #3 at present.
L3Harris delivered a four-quarter average earnings surprise of 1.53%. The Zacks Consensus Estimate for LHX’s first-quarter earnings is pegged at $2.89 per share, while that for sales is pinned at $5.09 billion.
Northrop Grumman (NOC - Free Report) is slated to report first-quarter results on Apr 25. NOC has an Earnings ESP of +1.65% and a Zacks Rank #3 at present.
NOC delivered a four-quarter average earnings surprise of 5.64%. The consensus mark for NOC’s first-quarter earnings is pegged at $5.83 per share, while that for sales is pinned at $9.77 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.