Results: Teledyne Technologies Incorporated Exceeded Expectations And The Consensus Has Updated Its Estimates

A week ago, Teledyne Technologies Incorporated (NYSE:TDY) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Results were good overall, with revenues beating analyst predictions by 2.6% to hit US$1.5b. Statutory earnings per share (EPS) came in at US$4.43, some 6.7% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the eleven analysts covering Teledyne Technologies are now predicting revenues of US$6.06b in 2025. If met, this would reflect a credible 2.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dip 2.3% to US$17.92 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$6.05b and earnings per share (EPS) of US$17.87 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Teledyne Technologies

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$592. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Teledyne Technologies at US$630 per share, while the most bearish prices it at US$539. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Teledyne Technologies' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.0% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that Teledyne Technologies is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Teledyne Technologies' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Teledyne Technologies going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Teledyne Technologies' balance sheet, and whether we think Teledyne Technologies is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.