Thousand Oaks, California-based Teledyne Technologies Incorporated (TDY) provides essential technologies to sense, transmit, and analyze information across various industrial sectors. With a market capitalization of $22.3 billion, the company operates in industries such as aerospace and defense, factory automation, environmental monitoring for air and water quality, energy, healthcare, and more.
Mixed Stock Performance Compared to Market Benchmarks
Despite its significant presence, Teledyne Technologies has not performed as well as the broader market in the past year. Currently, TDY stock has risen 7.3% year-to-date (YTD) and 19.9% over the past year. In comparison, the S&P 500 Index ($SPX) gained 26.2% in 2024 and 32.1% over the past year. Additionally, the Technology Select Sector SPDR Fund (XLK) showed 22% YTD gains and 27.3% returns over the past year.
Impressive Q3 Earnings Boost Stock Prices
On October 23, TDY stock saw a 6% surge following an impressive Q3 earnings announcement. The company reported record orders and sales during the quarter, reflecting strong demand across its longer-cycle defense, space, and energy sectors. Most of its shorter-cycle commercial businesses are stabilizing or recovering, contributing to a 2.9% year-over-year growth in net sales, totaling $1.4 billion. This figure exceeded Wall Street’s expectations by 1.3%. Teledyne also experienced significant profitability growth, with net income to shareholders up 31.9% year-over-year to $262 million and adjusted EPS at $5.10, beating consensus estimates by 2.6%.
Future Earnings Expectations and Analyst Ratings
Looking ahead to the current fiscal year ending in December, analysts anticipate a slight 1.2% dip in adjusted EPS to $19.45. The company’s history of earnings surprises is mixed; it has outperformed bottom-line estimates in three of the last four quarters but fell short once.
Currently, TDY stock carries a consensus “Strong Buy” rating. Of the eight analysts monitoring the stock, six recommend a “Strong Buy,” one advises a “Moderate Buy,” and one suggests holding. This outlook is slightly more optimistic than a month ago when five analysts had issued “Strong Buy” ratings.
Analysts Adjust Price Targets
On November 11, Needham analyst James Ricchiuti reaffirmed a “Buy” rating and raised the price target to $550, suggesting a potential upside of 14.8% from current levels. The mean price target for TDY now stands at $535.25, indicating an 11.7% premium. Meanwhile, the highest target of $565 hints at an upside potential of 17.9%.
On the date of publication, Aditya Sarawgi 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.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
