What Happened?
Shares of digital imaging and instrumentation provider Teledyne (NYSE: TDY) fell 5.1% in the morning session after the company reported third-quarter results that beat expectations but provided a disappointing earnings forecast for the next quarter.
Teledyne posted quarterly revenue of $1.54 billion and adjusted earnings per share of $5.57, exceeding Wall Street's estimates. The 6.7% year-on-year revenue growth and solid profit were positive signs for the company. However, investors focused on the future, and the company's weaker-than-expected earnings per share (EPS) guidance for the upcoming quarter raised concerns about its near-term profitability. While Teledyne did slightly raise its full-year adjusted EPS forecast, this was not enough to offset the negative outlook for the immediate future, leading to a sell-off in the shares.
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What Is The Market Telling Us
Teledyne’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 6.9% on the news that the company reported fourth-quarter results, which exceeded analysts' revenue and EPS estimates. Sales benefited from acquisitions and improved demand for TDY's unmanned air systems, surveillance systems, and commercial infrared imaging systems. On the other hand, its EPS guidance for next quarter missed, and its full-year EPS guidance fell slightly short of Wall Street's estimates. Overall, this was still a decent quarter.
Teledyne is up 21.6% since the beginning of the year, and at $556.69 per share, it is trading close to its 52-week high of $593.62 from October 2025. Investors who bought $1,000 worth of Teledyne’s shares 5 years ago would now be looking at an investment worth $1,653.
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