Will Segmental Sales Aid Teledyne's (TDY) Earnings in Q1?
Teledyne Technologies Incorporated TDY is slated to report its first-quarter 2023 results on Apr 26 before market open.
Teledyne has a four-quarter earnings surprise of 5.10%, on average. Expected strong sales growth across its business segment is likely to have benefited the overall results of the company in the first quarter of 2023. However, inflation and supply-chain issues may have partially dented the overall bottom line.
Digital Imaging Revenues to Remain Strong
The higher sales of industrial and scientific vision systems and high-resolution digital x-ray detectors are likely to have added impetus to the Digital Imaging segment’s revenues in the first quarter. Also, improved commercial infrared imaging cameras and component sales may have contributed positively to first-quarter unit revenues.
The Zacks Consensus Estimate for the Digital Imaging segment’s revenues in the first quarter is pegged at $783.5 million, indicating an improvement of 4.4% from the revenues reported in the year-ago quarter.
Instrumentation Segment Unit to Post Revenue Growth
The higher sales of test and measurement instrumentation, marine instrumentation and environmental instrumentation are likely to have aided the revenues from the Instrumentation segment in the first quarter of 2023.
The Zacks Consensus Estimate for the Instrumentation segment’s revenues in the first quarter is pegged at $319.3 million, indicating year-over-year growth of 3.4%.
Aerospace Products to Boost Aerospace & Defense Electronics’ Revenues
The higher demand and sales of both defense and commercial aerospace products are likely to have benefited the revenues from the Aerospace & Defense Electronics segment in the first quarter of 2023.
The Zacks Consensus Estimate for Aerospace and Defense Electronics’ revenues in the first quarter is pegged at $174.5 million, suggesting growth of 5% from the revenues reported in the year-ago quarter.
Engineered Systems’ Revenues May Continue to Grow
The higher sales of energy systems and engineered products are likely to have benefited Engineered Systems’ revenues.
The Zacks Consensus Estimate for Engineered Systems’ revenues in the first quarter is pegged at $98.1 million, implying growth of 2.8% from the revenues reported in the year-ago quarter.
Teledyne Technologies Incorporated Price and EPS Surprise
Teledyne Technologies Incorporated price-eps-surprise | Teledyne Technologies Incorporated Quote
Other Factors to Consider
Teledyne’s top line is likely to have benefited from strong sales growth across all its business units, thus positively contributing to the overall results of the company in the first quarter of 2023.
However, inflation and supply-chain constraints are likely to have partially dented TDY’s first-quarter earnings.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.37 billion, suggesting growth of 3.9% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $4.43 per share, indicating a 3.8% 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. 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. However, that is not the case here.
Teledyne has an Earnings ESP of -0.07% and a Zacks Rank #2. 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:
Spirit Aerosystems SPR has an Earnings ESP of +16.58% and a Zacks Rank #3. Spirit Aerosystems delivered a four-quarter average negative earnings surprise of 157.65%.You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SPR’s first-quarter sales is pegged at $1.48 billion, indicating an improvement of 25.8% from the prior-year reported figure.
Raytheon Technologies RTX has an Earnings ESP of +3.60% and a Zacks Rank #2. The long-term earnings growth rate of RTX is 8.3%.
The Zacks Consensus Estimate for Raytheon’s first-quarter earnings, pegged at $1.11 per share, indicates a decline of 3.5% from the prior-year reported figure. The Zacks Consensus Estimate for RTX’s sales suggests a growth rate of 7.3% from the prior-year reported figure.
CAE CAE has an Earnings ESP of +3.85% and a Zacks Rank #3. CAE delivered a four-quarter average negative earnings surprise of 2.23%.
The Zacks Consensus Estimate for CAE’s first-quarter sales is pegged at $900.1 million, suggesting a growth rate of 19.4% from the prior-year reported figure. The Zacks Consensus Estimate for its first-quarter earnings implies an improvement of 13% from the prior-year reported figure.
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Spirit Aerosystems Holdings, Inc. (SPR) : Free Stock Analysis Report
Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report
CAE Inc (CAE) : Free Stock Analysis Report
Raytheon Technologies Corporation (RTX) : Free Stock Analysis Report
