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Why Is Teledyne (TDY) Down 9.7% Since Last Earnings Report?
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It has been about a month since the last earnings report for Teledyne Technologies (TDY - Free Report) . Shares have lost about 9.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Teledyne due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Teledyne Technologies reported third-quarter 2025 adjusted earnings of $5.57 per share, which surpassed the Zacks Consensus Estimate of $5.50 by 1.3%. The bottom line also improved 7.8% from $5.10 recorded in the year-ago quarter.
Including one-time items, the company recorded GAAP earnings of $4.65 per share, up 16.1% from the prior-year period’s earnings of $5.54 per share.
The year-over-year decline in the bottom line can be attributed to higher cost of sales, selling, general and administrative expenses, as well as, research and development expenses in the third quarter than the year-ago quarter’s reported actuals.
Operational Highlights of TDY
Total sales were $1.54 billion, which beat the Zacks Consensus Estimate of $1.52 billion by 1%. The top line also surged 6.7% from $1.44 billion reported in the year-ago quarter. This improvement can be attributed to higher year-over-year sales recorded in the majority of its business segments.
TDY’s Segmental Performance
Instrumentation: Sales in this segment increased 3.9% year over year to $363.6 million, driven by higher sales of environmental instrumentation, marine instrumentation and electronic test and measurement instrumentation.
The adjusted operating income rose 2.3% year over year to $102.1 million.
Digital Imaging: Quarterly sales in this division increased 2.2% year over year to $785.4 million. The jump was due to higher sales of commercial infrared imaging components and subsystems, unmanned air systems and industrial automation imaging systems.
The adjusted operating income declined 2% year over year to $170.2 million.
Aerospace and Defense Electronics: Sales in this segment totaled $275.5 million, up 37.6% from the prior-year quarter. The improvement was driven by higher sales of defense electronics.
The adjusted operating income increased 36.8% year over year to $77.3 million.
Engineered Systems: Revenues in this division fell 8.1% year over year to $115 million due to lower sales of engineered products and energy systems.
This segment's operating income decreased 5.4% to $12.2 million.
Financial Condition of TDY
Teledyne’s cash and cash equivalents totaled $528.6 million as of Sept. 28, 2025, compared with $649.8 million as of Dec. 29, 2024.
Its long-term debt was $2.08 billion at the end of the third quarter of 2025 compared with $2.65 billion as of Dec. 29, 2024.
Cash flow from operating activities totaled $343.1 million for the third quarter compared with $249.8 million in the prior-year period.
TDY generated free cash flow of $313.9 million, up from $228.7 million in the prior-year quarter.
TDY’s Guidance
Teledyne expects to generate adjusted earnings in the band of $5.73-$5.88 per share for the fourth quarter of 2025. The Zacks Consensus Estimate for TDY’s fourth-quarter earnings is pegged at $5.90 per share, higher than the company's guided range.
For 2025, Teledyne expects its adjusted earnings to be in the range of $21.45-$21.60 per share. The Zacks Consensus Estimate for earnings is pegged at $21.48 per share, which lies below the midpoint of the company’s guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, Teledyne has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Teledyne has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Teledyne (TDY) Down 9.7% Since Last Earnings Report?
It has been about a month since the last earnings report for Teledyne Technologies (TDY - Free Report) . Shares have lost about 9.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Teledyne due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Teledyne's Q3 Earnings & Revenues Beat Estimates, Increase Y/Y
Teledyne Technologies reported third-quarter 2025 adjusted earnings of $5.57 per share, which surpassed the Zacks Consensus Estimate of $5.50 by 1.3%. The bottom line also improved 7.8% from $5.10 recorded in the year-ago quarter.
Including one-time items, the company recorded GAAP earnings of $4.65 per share, up 16.1% from the prior-year period’s earnings of $5.54 per share.
The year-over-year decline in the bottom line can be attributed to higher cost of sales, selling, general and administrative expenses, as well as, research and development expenses in the third quarter than the year-ago quarter’s reported actuals.
Operational Highlights of TDY
Total sales were $1.54 billion, which beat the Zacks Consensus Estimate of $1.52 billion by 1%. The top line also surged 6.7% from $1.44 billion reported in the year-ago quarter. This improvement can be attributed to higher year-over-year sales recorded in the majority of its business segments.
TDY’s Segmental Performance
Instrumentation: Sales in this segment increased 3.9% year over year to $363.6 million, driven by higher sales of environmental instrumentation, marine instrumentation and electronic test and measurement instrumentation.
The adjusted operating income rose 2.3% year over year to $102.1 million.
Digital Imaging: Quarterly sales in this division increased 2.2% year over year to $785.4 million. The jump was due to higher sales of commercial infrared imaging components and subsystems, unmanned air systems and industrial automation imaging systems.
The adjusted operating income declined 2% year over year to $170.2 million.
Aerospace and Defense Electronics: Sales in this segment totaled $275.5 million, up 37.6% from the prior-year quarter. The improvement was driven by higher sales of defense electronics.
The adjusted operating income increased 36.8% year over year to $77.3 million.
Engineered Systems: Revenues in this division fell 8.1% year over year to $115 million due to lower sales of engineered products and energy systems.
This segment's operating income decreased 5.4% to $12.2 million.
Financial Condition of TDY
Teledyne’s cash and cash equivalents totaled $528.6 million as of Sept. 28, 2025, compared with $649.8 million as of Dec. 29, 2024.
Its long-term debt was $2.08 billion at the end of the third quarter of 2025 compared with $2.65 billion as of Dec. 29, 2024.
Cash flow from operating activities totaled $343.1 million for the third quarter compared with $249.8 million in the prior-year period.
TDY generated free cash flow of $313.9 million, up from $228.7 million in the prior-year quarter.
TDY’s Guidance
Teledyne expects to generate adjusted earnings in the band of $5.73-$5.88 per share for the fourth quarter of 2025. The Zacks Consensus Estimate for TDY’s fourth-quarter earnings is pegged at $5.90 per share, higher than the company's guided range.
For 2025, Teledyne expects its adjusted earnings to be in the range of $21.45-$21.60 per share. The Zacks Consensus Estimate for earnings is pegged at $21.48 per share, which lies below the midpoint of the company’s guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, Teledyne has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Teledyne has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.