It's been a good week for Teledyne Technologies Incorporated (NYSE:TDY) shareholders, because the company has just released its latest first-quarter results, and the shares gained 3.9% to US$466. Results were roughly in line with estimates, with revenues of US$1.4b and statutory earnings per share of US$3.99. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
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Taking into account the latest results, the consensus forecast from Teledyne Technologies' eleven analysts is for revenues of US$6.05b in 2025. This reflects a credible 4.8% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$17.65, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$6.05b and earnings per share (EPS) of US$18.06 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
See our latest analysis for Teledyne Technologies
It might be a surprise to learn that the consensus price target was broadly unchanged at US$555, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Teledyne Technologies at US$600 per share, while the most bearish prices it at US$521. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Teledyne Technologies is an easy business to forecast or the the analysts are all using similar assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Teledyne Technologies' revenue growth is expected to slow, with the forecast 6.5% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.1% annually. So it's pretty clear that, while Teledyne Technologies' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$555, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. 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 still need to take note of risks, for example - Teledyne Technologies has 1 warning sign we think you should be aware of.
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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.