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What Awaits Teledyne Technologies (TDY) in Q3 Earnings?

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Teledyne Technologies, Inc. (TDY - Free Report) is scheduled to release third-quarter 2020 results on Oct 21, before market open. In the last reported quarter, the company delivered a positive earnings surprise of 20.90%.

Moreover, Teledyne has a four-quarter positive earnings surprise of 11.70%, on average.

Factors at Play

During the second quarter's earnings call, the company announced that management expects overall sales in the third quarter to reflect similar weak numbers as the second quarter, courtesy of the COVID-19 impacts. As a result, the company might have witnessed low digital imaging sales, temporary declines in surgery and cancer radiotherapy sales, and low OEM equipment installations, which is likely to have marred the top-line performance in the soon-to-be-reported quarter.

Notably, the Zacks Consensus Estimate for Teledyne’s third-quarter revenues is pegged at $752.5 million, which indicates a drop of 6.2% from the year-ago quarter’s reported figure.

Consequently, we remain skeptical about the company’s earnings performance in the yet-to-be-reported quarter. Although the company has been following an aggressive cost-management process, mounting costs due to the COVID-19 impacts might have hurt its quarterly operating income to some extent. This along with the expected revenue decline is likely to have affected the company’s third-quarter bottom line.

The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $2.40, which indicates a decline of 15.5% from the year-ago quarter’s reported figure.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Teledyne Technologies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Teledyne carries a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Teledyne Technologies Incorporated Price and EPS Surprise

Stocks to Consider

Here are some defense companies you may want to consider, as these have the right combination of elements to post an earnings beat in their upcoming releases:

Northrop Grumman Corporation (NOC - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank #2. The company will announce third-quarter 2020 earnings on Oct 22.

L3Harris Technologies Inc. (LHX - Free Report) has an Earnings ESP of +0.57% and a Zacks Rank #2. The company will announce third-quarter 2020 earnings on Oct 30.

An Upcoming Release

The Boeing Company (BA - Free Report) is scheduled to report third-quarter 2020 results on Oct 28.

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