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Teledyne (TDY) Reliance on International Sales: What Investors Need to Know

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Have you assessed how the international operations of Teledyne Technologies (TDY - Free Report) performed in the quarter ended March 2025? For this defense and aerospace industry supplier, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

While delving into TDY's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

The company's total revenue for the quarter stood at $1.45 billion, increasing 7.4% year over year. Now, let's delve into TDY's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Unveiling Trends in TDY's International Revenues

During the quarter, All other countries contributed $117.2 million in revenue, making up 8.08% of the total revenue. When compared to the consensus estimate of $119.7 million, this meant a surprise of -2.09%. Looking back, All other countries contributed $138.8 million, or 9.24%, in the previous quarter, and $110.9 million, or 8.21%, in the same quarter of the previous year.

Asia accounted for 15.30% of the company's total revenue during the quarter, translating to $221.8 million. Revenues from this region represented a surprise of -1.3%, with Wall Street analysts collectively expecting $224.71 million. When compared to the preceding quarter and the same quarter in the previous year, Asia contributed $247.8 million (16.49%) and $213 million (15.78%) to the total revenue, respectively.

Of the total revenue, $341.6 million came from Europe during the last fiscal quarter, accounting for 23.56%. This represented a surprise of +0.67% as analysts had expected the region to contribute $339.34 million to the total revenue. In comparison, the region contributed $364.2 million, or 24.24%, and $331.4 million, or 24.55%, to total revenue in the previous and year-ago quarters, respectively.

International Market Revenue Projections

Wall Street analysts expect Teledyne to report $1.46 billion in total revenue for the current fiscal quarter, indicating an increase of 6.5% from the year-ago quarter. All other countries, Asia and Europe are expected to contribute 8.4% ($122.87 million), 15.7% ($229.38 million) and 23.5% ($343.79 million) to the total revenue, respectively.

For the full year, the company is expected to generate $6 billion in total revenue, up 5.8% from the previous year. Revenues from All other countries, Asia and Europe are expected to constitute 8.4% ($502.93 million), 15.7% ($939.37 million) and 23.6% ($1.41 billion) of the total, respectively.

The Bottom Line

Relying on global markets for revenues presents both prospects and challenges for Teledyne. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

Teledyne, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Teledyne's Recent Stock Market Performance

The stock has witnessed an increase of 5.8% over the past month versus the Zacks S&P 500 composite's an increase of 9.1%. In the same interval, the Zacks Aerospace sector, to which Teledyne belongs, has registered an increase of 9.9%. Over the past three months, the company's shares saw an increase of 0.9%, while the S&P 500 declined by 3.1%. In comparison, the sector experienced an increase of 4.8% during this timeframe.

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