Will Segment Growth Aid Teledyne Technologies' Q2 Earnings?

Teledyne Technologies Incorporated (TDY) is slated to post second-quarter 2025 results on July 23, before market open.

Teledyne Technologies delivered a four-quarter earnings surprise of 2.69%, on average. Improved sales expectations from all four of its business segments are likely to have boosted TDY’s overall second-quarter top line. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

TDY’s Digital Imaging Sales Likely to Rise

Higher sales volume from commercial infrared imaging components and surveillance systems is expected to have boosted the company’s Digital Imaging Sales unit’s revenue performance.

The Zacks Consensus Estimate for the Digital Imaging segment’s second-quarter revenues is pegged at $756.5 million. This indicates year-over-year growth of 2.3%.

Teledyne Technologies Incorporated Price and EPS Surprise

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

TDY’s Instrumentation Segment Sales to Increase

The Instrumentation unit’s revenue performance in the second quarter is likely to have benefited from increasing sales of marine instrumentation, primarily driven by stronger offshore energy and subsea defense markets, as well as higher sales from electronic test and measurement instrumentation.

The Zacks Consensus Estimate for the Instrumentation segment’s revenues in the second quarter is pegged at $358.5 million, implying a year-over-year rise of 7.5%.

TDY’s Aerospace & Defense Electronics Holds Growth Potential

Solid organic sales of defense electronics products, in addition to sales growth from recent acquisitions, are likely to have boosted this unit’s top-line performance.

The Zacks Consensus Estimate for Aerospace and Defense Electronics unit’s second-quarter revenues is pegged at $240.9 million, implying growth of 23.9% from the top line reported in the year-ago quarter.

TDY’s Engineered Systems Sales Likely to Remain Strong

Higher sales of engineered products, primarily driven by electronic manufacturing services products, are likely to have aided Engineered Systems’ revenues.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $110.2 million, implying a rise of 3.2% from the top line reported in the year-ago quarter.

Q2 Estimates for TDY

With all of Teledyne Technologies’ segments expected to deliver a solid top-line performance, its overall revenues are projected to have been strong.

A robust top-line performance is likely to have bolstered its overall bottom-line performance. Positive synergies from the acquisition of Micropac and Qioptiq are also expected to have contributed favorably to TDY’s earnings.

The Zacks Consensus Estimate for TDY’s revenues is pegged at $1.47 billion, implying a rise of 7.1% from the figure reported in the year-ago quarter.

The consensus estimate for second-quarter earnings is pegged at $5.01 per share, indicating 9.4% growth from the prior-year figure.

What the Zacks Model Unveils for TDY

Our proven model does not conclusively predict an earnings beat for Teledyne Technologies this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.

TDY’s Earnings ESP: Teledyne Technologies has an Earnings ESP of +1.22%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

TDY’s Zacks Rank: Teledyne Technologies currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Below, we have mentioned a few players from the same industry that have the right combination of elements to beat on earnings this reporting cycle.

Curtiss-Wright Corp. (CW) is set to report second-quarter 2025 earnings on Aug. 6, after market close. It has an Earnings ESP of +2.58% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for earnings is pegged at $3.09 per share, indicating year-over-year growth of 15.7%. The consensus estimate for sales is pegged at $849.8 million, indicating year-over-year growth of 8.3%.

Woodward (WWD) is slated to report its fiscal third-quarter 2025 results on July 28, after market close. It has an Earnings ESP of +4.29% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for WWD’s earnings is pegged at $1.62 per share. The consensus estimate for sales is pegged at $887.8 million, indicating year-over-year growth of 4.7%.

Transdigm Group (TDG) is expected to report fiscal third-quarter earnings soon. It has an Earnings ESP of +0.25% and carries a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for TDG’s earnings is pegged at $9.78 per share, indicating year-over-year growth of 8.7%. The consensus estimate for sales is pegged at $2.30 billion, indicating year-over-year growth of 12.2%.

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This article originally published on Zacks Investment Research (zacks.com).

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