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What's in the Cards for Teledyne (TDY) This Earnings Season?

Zacks Equity Research

Teledyne Technologies Incorporated TDY is set to report fourth-quarter and full-year 2019 results on Jan 22, before market open.

In the last reported quarter, the company delivered a positive earnings surprise of 12.25%. Moreover, it surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average positive earnings surprise being 10.13%.

Let’s see how things have shaped up prior to this announcement.

Factors at Play

Regular launch of products bolster Teledyne Technologies’ top-line growth. Keeping up with this trend, during the fourth quarter of 2019, the company introduced a handful of products in the market, including WaveRunner 8000 high definition (HD) oscilloscope, the 8000HD Motor Drive Analyzer, the OscilloSYNCTM technology and ADQ7WB dual-channel 12-bit wideband digitizer. The company also launched BoraTime-of-Flight CMOS image sensor and Vicore camera vision system.

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We expect these innovations to have improved revenues for the company. Currently, the Zacks Consensus Estimate for fourth-quarter revenues is pegged at $825.9 million, indicating an improvement of 10.4% from fourth-quarter 2018.

Teledyne Technologies Incorporated Price and EPS Surprise

Teledyne Technologies Incorporated Price and EPS Surprise
Teledyne Technologies Incorporated Price and EPS Surprise

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

Apart from these organic sales contributions, a steady acquisition spree continues to fuel Teledyne Technologies’ top- and bottom-line growth. Notably, in September 2019, the company acquired Micralyne to gain access to Micralyne’s unique microfluidic technology for biotech applications. Notably, post this deal, Teledyne increased its Micro Electro Mechanical Systems manufacturing capacity, which, in turn, should magnify its production and thereby revenues.

Positive synergies from this takeover are also expected to have boosted Teledyne Technologies’ earnings in the fourth quarter.  Meanwhile, favorable margin improvement and tax rate are expected to have boosted the company’s full-year bottom line.

For fourth-quarter earnings, the Zacks Consensus Estimate stands at $2.76 per share, implying 18.5% growth from the year-ago quarter’s reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Teledyne Technologies in the fourth quarter. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Teledyne Technologies has an Earnings ESP of 0.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some defense companies with the right combination of elements to beat on earnings in their upcoming releases.

Aerojet Rocketdyne Holdings AJRD has an Earnings ESP of +2.17% and a Zacks Rank #3. The company is expected to announce fourth-quarter 2019 earnings soon.

General Dynamics GD has an Earnings ESP of +2.23% and a Zacks Rank #3. The company will announce fourth-quarter 2019 earnings results on Jan 29.

Transdigm Group TDG has an Earnings ESP of +4.31% and a Zacks Rank #3. The company is expected to announce first-quarter fiscal 2020 earnings soon.

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