Benzinga | Jan 26, 2021 10:13AM EST

Preview: Teledyne Technologies's Earnings

On Wednesday, January 27, Teledyne Technologies (NYSE:TDY) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Teledyne Technologies EPS will likely be near $3.11 while revenue will be around $801.50 million, according to analysts. Teledyne Technologies earnings in the same period a year ago was $2.89 per share. Quarterly sales came in at $834.20 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Wednesday, EPS would be up 7.61%. Revenue would have fallen 3.92% from the same quarter last year. Teledyne Technologies's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 2.36 1.98 2.19 2.74EPS Actual 2.48 2.48 2.17 3.06Revenue Estimate 751.04 M 743.65 M 790.17 M 826.78 MRevenue Actual 749.00 M 743.30 M 784.60 M 834.20 M

Stock Performance

Over the last 52-week period, shares are up 3.63%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Teledyne Technologies is scheduled to hold the call at 11:00:00 ET and can be accessed here.