Will Segmental Sales Aid Teledyne's (TDY) Earnings in Q2?
Teledyne Technologies Incorporated TDY is slated to report its second-quarter 2023 results on Jul 26 before market open.
Teledyne has a four-quarter earnings surprise of 4.57%, on average. Anticipated robust sales expansion throughout its business segment is likely to have positively impacted its overall performance in the second quarter of 2023.
Digital Imaging May Continue to Boost Sales
The higher sales of industrial and scientific vision systems and low-dose high-resolution digital X-ray detectors may result in elevated revenue numbers for the Digital Imaging segment in the second quarter.
The Zacks Consensus Estimate for the Digital Imaging segment’s revenues in the second quarter is pegged at $805.3 million. This indicates an improvement of 3.8% from the revenues reported in the year-ago quarter.
Instrumentation Segment Revenues to Remain Healthy
Instrumentation sales performance in the second quarter of 2023 is likely to have been boosted by enhanced revenues from the sale of electronic test and measurement instrumentation, marine instrumentation and environmental instrumentation.
The Zacks Consensus Estimate for the Instrumentation segment’s revenues in the second quarter is pegged at $331.1 million. This calls for year-over-year growth of 6%.
Aerospace & Defense Electronics Revenues to Show Growth
Growth in the sale of defense and commercial aerospace products is likely to have benefited revenues from the Aerospace & Defense Electronics segment in the second quarter of 2023.
The Zacks Consensus Estimate for Aerospace and Defense Electronics’ revenues in the second quarter is pegged at $176.4 million. This suggests growth of 4.5% from the revenues reported in the year-ago quarter.
Engineered Systems Revenues 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 second quarter is pegged at $103.9 million. This implies growth of 5.2% from the revenues reported in the year-ago quarter.
Projections Suggest Growth
Teledyne sells its products to the U.S. Government and other commercial customers. In this context, our model suggests revenue growth of 1.5% in the second quarter for sales to the government and an upward revision of 5.2% for sales to commercial customers.
Q2 Estimates
With all the segments of Teledyne expected to reflect a solid second-quarter top line, the company’s overall revenues should be favorable. The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.42 billion, suggesting growth of 4.5% from the figure reported in the year-ago quarter.
Such a solid revenue growth expectation, along with a modest improvement observed in supply-chain challenges, must have contributed to the company’s overall bottom line. The Zacks Consensus Estimate for TDY’s second-quarter earnings is pegged at $4.63 per share, indicating a 4.5% increase from the prior-year reported figure.
Teledyne Technologies Incorporated Price and EPS Surprise
Teledyne Technologies Incorporated price-eps-surprise | Teledyne Technologies Incorporated Quote
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 -2.56% 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:
TransDigm Group Incorporated TDG has an Earnings ESP of +1.53% and a Zacks Rank #2. TransDigm delivered a four-quarter average earnings surprise of 8.97%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TDG’s second-quarter sales is pegged at $1.68 billion, indicating an improvement of 19.5% from the prior-year reported figure.
Embraer S.A. ERJ has an Earnings ESP of +25% and a Zacks Rank #3. The long-term earnings growth rate of ERJ is 17%.
The Zacks Consensus Estimate for Embraer’s second-quarter earnings, pegged at 12 cents per share, indicates a decline of 42.9% from the prior-year reported figure. The Zacks Consensus Estimate for ERJ’s sales suggests a growth rate of 14.3% from the prior-year reported figure.
Huntington Ingalls Industries, Inc. HII has an Earnings ESP of +0.48% and a Zacks Rank #3. HII delivered a four-quarter average earnings surprise of 8.09%.
The Zacks Consensus Estimate for HII’s second-quarter sales is pegged at $2.73 billion, suggesting a growth rate of 2.5% from the prior-year reported figure. The Zacks Consensus Estimate for its second-quarter earnings implies a decline of 29.3% from the prior-year reported figure.
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Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report
