Yahoo Finance Analysts Are Updating Their Teledyne Technologies Incorporated (NYSE:TDY) Estimates After Its First-Quarter Results
The analysts might have been a bit too bullish on Teledyne Technologies Incorporated (NYSE:TDY), given that the company fell short of expectations when it released its first-quarter results last week. Teledyne Technologies missed analyst forecasts, with revenues of US$1.4b and statutory earnings per share (EPS) of US$3.72, falling short by 3.1% and 2.9% respectively. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Teledyne Technologies
Following last week's earnings report, Teledyne Technologies' eight analysts are forecasting 2024 revenues to be US$5.61b, approximately in line with the last 12 months. Statutory earnings per share are forecast to sink 10% to US$16.74 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.87b and earnings per share (EPS) of US$17.42 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.
The analysts made no major changes to their price target of US$486, suggesting the downgrades are not expected to have a long-term impact on Teledyne Technologies' valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Teledyne Technologies, with the most bullish analyst valuing it at US$510 and the most bearish at US$450 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Teledyne Technologies' revenue growth is expected to slow, with the forecast 0.2% annualised growth rate until the end of 2024 being well below the historical 16% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.7% 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Teledyne Technologies. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will 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. We have forecasts for Teledyne Technologies going out to 2026, and you can see them free on our platform here.
It might also be worth considering whether Teledyne Technologies' debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.
