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Why Is Teledyne (TDY) Down 6.9% Since Last Earnings Report?
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A month has gone by since the last earnings report for Teledyne Technologies (TDY - Free Report) . Shares have lost about 6.9% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Teledyne due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Teledyne Technologies Incorporated before we dive into how investors and analysts have reacted as of late.
Teledyne Technologies reported first-quarter 2026 adjusted earnings of $5.80 per share, which surpassed the Zacks Consensus Estimate of $5.48 by 5.9%. The bottom line also improved 17.2% from $4.95 recorded in the year-ago quarter.
Including one-time items, the company recorded GAAP earnings of $4.85 per share, up 21.6% from the prior-year period’s earnings of $3.99.
The year-over-year improvement in the bottom line can be attributed to higher net sales and operating income in the first quarter than the year-ago quarter’s reported actuals.
Operational Highlights of TDY
Total sales were $1.56 billion, which beat the Zacks Consensus Estimate of $1.51 billion by 3.3%. The top line also jumped 7.6% from $1.45 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 5.3% year over year to $361.4 million, driven by higher sales of marine instrumentation, primarily due to stronger offshore energy and defense markets.
The adjusted operating income declined 4.2% year over year to $91.9 million.
Digital Imaging: Quarterly sales in this division increased 7.9% year over year to $816.9 million. The jump was due to higher sales of infrared imaging detectors, components and subsystems for both defense and commercial applications, as well as higher surveillance and unmanned air systems for defense applications.
The adjusted operating income rose 13.1% year over year to $189.7 million.
Aerospace and Defense Electronics: Sales in this segment totaled $277.5 million, up 14.4% from the prior-year quarter. The improvement was driven by higher sales of defense electronics.
The adjusted operating income increased 23.2% year over year to $77.5 million.
Engineered Systems: Revenues in this division fell 2.6% year over year to $104.3 million due to lower sales of engineered products and energy systems.
This segment's operating income rose 8.3% to $11.7 million.
Financial Condition of TDY
Teledyne’s cash and cash equivalents totaled $521.4 million as of March 29, 2026 compared with $352.4 million as of Dec. 28, 2025.
Its long-term debt was $2.026 billion at the end of the first quarter of 2026 compared with $2.025 billion as of Dec. 28, 2025.
Cash flow from operating activities totaled $234 million for the first quarter compared with $242.6 million in the prior-year period.
TDY generated free cash flow of $204.3 million, down from $224.6 million in the prior-year quarter.
TDY’s Guidance
Teledyne expects to generate adjusted earnings in the band of $5.70-$5.80 per share for the second quarter of 2026. The Zacks Consensus Estimate for TDY’s second-quarter earnings is pegged at $5.79 per share, which is at the higher end of the company's guided range.
For 2026, Teledyne raised its adjusted earnings to be in the range of $23.85-$24.15 per share compared with the prior range of $23.45-$23.85. The Zacks Consensus Estimate for earnings is pegged at $23.90 per share, which is at the lower end of the company's guided range.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Teledyne has a subpar Growth Score of D, a score with the same score on the momentum front. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
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
Teledyne has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Teledyne (TDY) Down 6.9% Since Last Earnings Report?
A month has gone by since the last earnings report for Teledyne Technologies (TDY - Free Report) . Shares have lost about 6.9% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Teledyne due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Teledyne Technologies Incorporated before we dive into how investors and analysts have reacted as of late.
Teledyne's Q1 Earnings & Revenues Beat Estimates, '26 EPS View Raised
Teledyne Technologies reported first-quarter 2026 adjusted earnings of $5.80 per share, which surpassed the Zacks Consensus Estimate of $5.48 by 5.9%. The bottom line also improved 17.2% from $4.95 recorded in the year-ago quarter.
Including one-time items, the company recorded GAAP earnings of $4.85 per share, up 21.6% from the prior-year period’s earnings of $3.99.
The year-over-year improvement in the bottom line can be attributed to higher net sales and operating income in the first quarter than the year-ago quarter’s reported actuals.
Operational Highlights of TDY
Total sales were $1.56 billion, which beat the Zacks Consensus Estimate of $1.51 billion by 3.3%. The top line also jumped 7.6% from $1.45 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 5.3% year over year to $361.4 million, driven by higher sales of marine instrumentation, primarily due to stronger offshore energy and defense markets.
The adjusted operating income declined 4.2% year over year to $91.9 million.
Digital Imaging: Quarterly sales in this division increased 7.9% year over year to $816.9 million. The jump was due to higher sales of infrared imaging detectors, components and subsystems for both defense and commercial applications, as well as higher surveillance and unmanned air systems for defense applications.
The adjusted operating income rose 13.1% year over year to $189.7 million.
Aerospace and Defense Electronics: Sales in this segment totaled $277.5 million, up 14.4% from the prior-year quarter. The improvement was driven by higher sales of defense electronics.
The adjusted operating income increased 23.2% year over year to $77.5 million.
Engineered Systems: Revenues in this division fell 2.6% year over year to $104.3 million due to lower sales of engineered products and energy systems.
This segment's operating income rose 8.3% to $11.7 million.
Financial Condition of TDY
Teledyne’s cash and cash equivalents totaled $521.4 million as of March 29, 2026 compared with $352.4 million as of Dec. 28, 2025.
Its long-term debt was $2.026 billion at the end of the first quarter of 2026 compared with $2.025 billion as of Dec. 28, 2025.
Cash flow from operating activities totaled $234 million for the first quarter compared with $242.6 million in the prior-year period.
TDY generated free cash flow of $204.3 million, down from $224.6 million in the prior-year quarter.
TDY’s Guidance
Teledyne expects to generate adjusted earnings in the band of $5.70-$5.80 per share for the second quarter of 2026. The Zacks Consensus Estimate for TDY’s second-quarter earnings is pegged at $5.79 per share, which is at the higher end of the company's guided range.
For 2026, Teledyne raised its adjusted earnings to be in the range of $23.85-$24.15 per share compared with the prior range of $23.45-$23.85. The Zacks Consensus Estimate for earnings is pegged at $23.90 per share, which is at the lower end of the company's guided range.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Teledyne has a subpar Growth Score of D, a score with the same score on the momentum front. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
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
Teledyne has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.