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Will Low Segmental Sales Hurt Teledyne (TDY) in Q2 Earnings?
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Teledyne Technologies Incorporated (TDY - Free Report) is slated to report second-quarter 2024 results on Jul 24, before market open.
Teledyne delivered a four-quarter earnings surprise of 3.19%, on average. The dismal sales expectation from two of its four business segments is likely to have hurt TDY’s overall second-quarter performance.
Digital Imaging Sales to Reflect a Bump
Organic growth from Teledyne FLIR business, as well as growth driven by its unmanned system businesses and resiliency of its core Infrared Imaging businesses, is expected to have boosted Digital Imaging Sales unit’s overall sales performance.
The Zacks Consensus Estimate for the Digital Imaging segment’s second-quarter revenues is pegged at $755.9 million. This indicates a decline of 4.7% from the top line reported in the year-ago quarter.
Teledyne Technologies Incorporated Price and EPS Surprise
The Instrumentation unit’s revenue performance in the second quarter is likely to have benefited from marine electronics and unmanned underwater system businesses. However, dismal sales from the Test and Measurement Instrumentation business might have negatively impacted the unit’s top-line performance.
The Zacks Consensus Estimate for the Instrumentation segment’s revenues is pegged at $328.6 million, implying a year-over-year rise of 0.1%.
Thanks to the rapidly growing commercial air traffic in recent times, solid sales of commercial aerospace products are expected to have bolstered TDY’s Aerospace & Defense Electronics segment’s revenues in the second quarter. Also, higher sales of defense microwave products are likely to have aided this unit’s overall performance.
The Zacks Consensus Estimate for Aerospace and Defense Electronics’ second-quarter revenues is pegged at $188.9 million, implying growth of 1.5% from the top line reported in the year-ago quarter.
Engineered Systems’ Sales to Reflect Weakness
Lower sales of energy systems and engineered products are likely to have hurt Engineered Systems’ revenues.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $103.2 million, implying decline of 11.8% from the top line reported in the year-ago quarter.
Mixed Projections
Teledyne is expanding its presence in markets like energy, defense, healthcare etc. The company sells its products to the U.S. government and other commercial customers. In this context, our model implies year-over-year growth of 8.6% for sales to the government and a decline of 4.2% for sales to its commercial customers.
Q2 Estimates
With two of its major four segments expected to report a notable decline in their quarterly revenues, TDY’s overall top-line performance is likely to have been weak. The Zacks Consensus Estimate for revenues is pegged at $1.38 billion, implying a decline of 3.4% from the top line reported in the year-ago quarter.
Such dismal revenue expectations might have contributed unfavorably to the company’s quarterly earnings. This, along with supply-chain challenges and inflation impact, can be projected to have put a dent in TDY’s overall bottom-line performance.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $4.49 per share, indicating a 3.9% increase from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Teledyne this time around. 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 you can see below.
Teledyne has an Earnings ESP of -0.76% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Below we have mentioned the following players from the same industry that have the right combination of elements to beat on earnings this reporting cycle.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $3.30 per share, indicating an improvement of 22.2% from the prior-year quarter’s reported actuals. The Zacks Consensus Estimate for sales is pegged at $11.52 billion, which implies a 13.5% increase from the top line reported in the prior-year quarter.
Northrop Grumman (NOC - Free Report) is slated to report second-quarter 2024 results on Jul 25, before market open. It has an Earnings ESP of +1.09% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for second-quarter earnings is pinned at $5.95 per share, which suggests an 11.4% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for sales is pegged at $10.07 billion, which implies a 5.2% increase from the top line reported in the prior-year quarter.
Huntington Ingalls Industries (HII - Free Report) is expected to report second-quarter 2024 results on Aug 1, before market open. It has an Earnings ESP of +0.39% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $3.59 per share, which suggests a 9.8% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for sales is pegged at $2.84 billion, which implies a 1.9% increase from the top line reported in the prior-year quarter.
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Will Low Segmental Sales Hurt Teledyne (TDY) in Q2 Earnings?
Teledyne Technologies Incorporated (TDY - Free Report) is slated to report second-quarter 2024 results on Jul 24, before market open.
Teledyne delivered a four-quarter earnings surprise of 3.19%, on average. The dismal sales expectation from two of its four business segments is likely to have hurt TDY’s overall second-quarter performance.
Digital Imaging Sales to Reflect a Bump
Organic growth from Teledyne FLIR business, as well as growth driven by its unmanned system businesses and resiliency of its core Infrared Imaging businesses, is expected to have boosted Digital Imaging Sales unit’s overall sales performance.
The Zacks Consensus Estimate for the Digital Imaging segment’s second-quarter revenues is pegged at $755.9 million. This indicates a decline of 4.7% from the top line reported in the year-ago quarter.
Teledyne Technologies Incorporated Price and EPS Surprise
Teledyne Technologies Incorporated price-eps-surprise | Teledyne Technologies Incorporated Quote
Instrumentation Segment: Mixed Expectation
The Instrumentation unit’s revenue performance in the second quarter is likely to have benefited from marine electronics and unmanned underwater system businesses. However, dismal sales from the Test and Measurement Instrumentation business might have negatively impacted the unit’s top-line performance.
The Zacks Consensus Estimate for the Instrumentation segment’s revenues is pegged at $328.6 million, implying a year-over-year rise of 0.1%.
Aerospace & Defense Electronics Holds Growth Potential
Thanks to the rapidly growing commercial air traffic in recent times, solid sales of commercial aerospace products are expected to have bolstered TDY’s Aerospace & Defense Electronics segment’s revenues in the second quarter. Also, higher sales of defense microwave products are likely to have aided this unit’s overall performance.
The Zacks Consensus Estimate for Aerospace and Defense Electronics’ second-quarter revenues is pegged at $188.9 million, implying growth of 1.5% from the top line reported in the year-ago quarter.
Engineered Systems’ Sales to Reflect Weakness
Lower sales of energy systems and engineered products are likely to have hurt Engineered Systems’ revenues.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $103.2 million, implying decline of 11.8% from the top line reported in the year-ago quarter.
Mixed Projections
Teledyne is expanding its presence in markets like energy, defense, healthcare etc. The company sells its products to the U.S. government and other commercial customers. In this context, our model implies year-over-year growth of 8.6% for sales to the government and a decline of 4.2% for sales to its commercial customers.
Q2 Estimates
With two of its major four segments expected to report a notable decline in their quarterly revenues, TDY’s overall top-line performance is likely to have been weak. The Zacks Consensus Estimate for revenues is pegged at $1.38 billion, implying a decline of 3.4% from the top line reported in the year-ago quarter.
Such dismal revenue expectations might have contributed unfavorably to the company’s quarterly earnings. This, along with supply-chain challenges and inflation impact, can be projected to have put a dent in TDY’s overall bottom-line performance.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $4.49 per share, indicating a 3.9% increase from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Teledyne this time around. 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 you can see below.
Teledyne has an Earnings ESP of -0.76% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Below we have mentioned the following players from the same industry that have the right combination of elements to beat on earnings this reporting cycle.
General Dynamics (GD - Free Report) is set to report second-quarter earnings on Jul 24, before market open. It has an Earnings ESP of +0.08% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $3.30 per share, indicating an improvement of 22.2% from the prior-year quarter’s reported actuals. The Zacks Consensus Estimate for sales is pegged at $11.52 billion, which implies a 13.5% increase from the top line reported in the prior-year quarter.
Northrop Grumman (NOC - Free Report) is slated to report second-quarter 2024 results on Jul 25, before market open. It has an Earnings ESP of +1.09% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for second-quarter earnings is pinned at $5.95 per share, which suggests an 11.4% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for sales is pegged at $10.07 billion, which implies a 5.2% increase from the top line reported in the prior-year quarter.
Huntington Ingalls Industries (HII - Free Report) is expected to report second-quarter 2024 results on Aug 1, before market open. It has an Earnings ESP of +0.39% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $3.59 per share, which suggests a 9.8% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for sales is pegged at $2.84 billion, which implies a 1.9% increase from the top line reported in the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.