Will Strong Sales Momentum Boost Teledyne (TDY) Q1 Earnings?

Teledyne Technologies Incorporated TDY is expected to release its first quarter 2022 results on April 27 before market open.

Teledyne has a four-quarter earnings surprise of 24.72% on average. The strong performance of the majority of TDY’s segments in the first quarter should have contributed favorably to the company’s overall results.

Digital imaging – a key revenue enabler

The Teledyne FLIR business has been a key driver of Digital Imaging revenue since the FLIR acquisition. It is likely to have again contributed favorably to Digital Imaging segment revenues in the next quarter. In addition, the strong growth in sales of industrial and scientific sensors and vision systems should have benefited the segment’s turnover in the first quarter.

Zacks Consensus Estimate for First Quarter Digital Imaging Segment Revenue Set at $756 Million, Indicates a Significant 187% Improvement Over Reported Revenues in the Year-To-Date Quarter previous.

Instrumentation revenue – another growth driver

Revenues from the Instrumentation business are also expected to have continued their pace of growth in the first quarter. Rising sales of electronic test and measurement instruments, marine instrumentation and environmental instrumentation are expected to have boosted revenue in this segment.

Zacks’ consensus estimate for Instrumentation segment revenue in the first quarter is set at $297 million, indicating a 3.5% improvement over revenue reported in the prior year quarter.

Aerospace and defense electronics revenues could remain high

Robust sales volume of Teledyne’s commercial aerospace products, supported by the significant recovery in the commercial aerospace segment, is expected to have supported Aerospace and Defense Electronics segment revenues in the first quarter. Additionally, higher defense and space electronics sales are expected to have had a positive impact on segment revenue in the soon-to-be-released quarter.

Zacks’ consensus estimate for Aerospace and Defense Electronics revenue in the first quarter is set at $161 million, indicating 6.6% growth over reported revenue in the year-quarter previous.

Engineering systems performance remains dismal

Engineered systems revenue is likely to have been impacted by lower sales of engineered products. Additionally, lower sales in the turbine engine business, mainly due to its exit from the business last year, is expected to have once again impacted the performance of this segment in the reporting quarter. Zacks consensus estimate for Engineered Systems revenue in the first quarter is set at $102.1 million, indicating a 2.9% decline from revenue reported in the prior year quarter .

Other Factors to Consider

Such growth expectations from the majority of its segments make Teledyne optimistic about its overall revenue performance in the first quarter. This likely bolstered the company’s bottom line. However, the impact of inflation and supply chain constraints may have negatively impacted TDY’s soon to be released quarterly results.

Teledyne Technologies Incorporated award and EPS surprise

Teledyne Technologies Incorporated price-eps-surprise | Quote from Teledyne Technologies Incorporated

First quarter estimates

Zacks’ consensus estimate for first-quarter revenue is set at $1.33 billion, suggesting growth of 64.5% over the figure reported in the year-ago quarter.

Zacks’ consensus estimate for first-quarter earnings is pegged at $4.09 per share, indicating a 35.4% increase over the prior year’s figure.

What the Zacks Model Reveals

Our proven model does not conclusively predict an earnings beat for Teledyne this time around. The combination of a positive ESP gains and a Zacks rank of #1 (strong buy), 2 (buy), or 3 (hold) increase the odds of beating gains. However, that is not the case here.

Teledyne has an ESP on Earnings of -1.71% and a Zacks Rank #3. You can discover the best stocks to buy or sell before they’re flagged with our earnings ESP filter.

Actions to Consider

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Spirit Aerosystems SPR has a +9.34% win ESP and a #3 Zacks rank. You can see the full list of today’s Zacks #1 Rank stocks here.

Spirit Aerosystems has a four-quarter average negative surprise of 14.56%. Zacks’ consensus estimate for SPR’s first-quarter earnings points to a 21.5% improvement over the prior year’s figure.

CAE CAE has a +11.11% Earnings ESP and a #3 Zacks Rank. CAE posted a surprise four-quarter average profit of 0.72%.

CAE’s long-term earnings growth rate is set at 8%. The Zacks consensus estimate for CAE’s first-quarter earnings is pegged at 18 cents per share.

Ducommun DCO has an ESP of +18.10% and Zacks Rank #3. Ducommun delivered a surprise four-quarter average profit of 3.80%.

Zacks’ consensus estimate for DCO’s first-quarter sales and earnings are pegged at $160.9 million and 53 cents per share, respectively.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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