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California-based Teledyne Technologies Incorporated (TDY) provides enabling technologies for industrial growth markets, including aerospace and defense, factory automation, environmental monitoring for air and water quality, electronics design and development, oceanographic research, deepwater oil and gas exploration, medical imaging, and pharmaceutical research. Its market cap currently stands at $18.1 billion. TDY is scheduled to release its fiscal 2024 Q2 earnings results on Wednesday, Jul. 24.
Ahead of the event, analysts expect Teledyne to report a profit of $4.49 per share, down 3.9% from $4.67 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in three of the last four quarters while missing on one other occasion.
Teledyne’s EPS of $4.55 for the last reported quarter rose marginally year over year but failed to beat the consensus estimate by 1.9% amid weaker-than-expected performance in the industrial automation and test and measurement markets.
Looking ahead, analysts expect Teledyne to report an EPS of $19.34 in fiscal 2024, down 1.8% from $19.69 in fiscal year 2023. However, its fiscal 2025 EPS is projected to rise 11.6% annually to $21.58.
Over the past 52 weeks, TDY stock has dipped by 6.1%, trailing behind the broader S&P 500 Index's ($SPX) 27.8% gains and the Technology Select Sector SPDR Fund’s (XLK) 38.5% returns during the same period.
The stock plummeted by 11% following the release of its Q1 earnings report on April 24. This drop was due to the company's failure to meet consensus earnings and revenue estimates, impacted by deterioration in short-cycle imaging and instrumentation markets, weaker-than-expected performance in industrial automation markets, and a decline in sales in the test and measurement markets. Additionally, anticipated sales reductions in some high-margin businesses led the company to revise its full-year non-GAAP EPS outlook, projecting to range between $19.25 and $19.45 from the previously announced range of $20.35 to $20.68.
Despite these challenges, Teledyne remains optimistic, expecting stronger performances in marine, aviation, and certain defense businesses to offset the declines. It also highlighted the company's strong balance sheet and record free cash flow, which supports strategic stock repurchases ranging from $250 million to $300 million under a new authorization. Furthermore, Teledyne is focused on strategic growth through acquisitions, evidenced by its recent purchase of Valeport and the pending acquisition of Adimec Holdings B.V., which are expected to strengthen its market position in various segments.
The current consensus opinion on Teledyne stock is “Moderate Buy” overall. Out of seven analysts covering the stock, four suggest a “Strong Buy,” one recommends a “Moderate Buy,” and the remaining two analysts advise a “Hold.”
The average analyst price target for Teledyne is $467.57, indicating a potential upside of 20.3% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
