Earnings Alerts

Teradyne Inc (TER) Earnings: 3Q EPS Forecast Falls Short of Estimates, Second Quarter Results Exceed Expectations

“`html

  • Teradyne’s adjusted earnings per share (EPS) forecast for the third quarter is between 69 cents and 87 cents, compared to an estimated 89 cents.
  • Revenue for the third quarter is projected to be between $710 million and $770 million, missing the estimated $757.5 million.
  • For the second quarter, adjusted EPS was 57 cents, down from 86 cents year-over-year, but above the estimated 54 cents.
  • Second quarter net revenue was $651.8 million, a decline of 11% year-over-year, but slightly above the estimate of $650.9 million.
  • Engineering and development expenses were $118.4 million in the second quarter, a 5.9% increase year-over-year, slightly lower than the estimated $119.3 million.
  • Semiconductor Test revenue in the second quarter reached $492 million, exceeding the estimate of $479 million.
  • The company noted that the Semiconductor Test Group outperformed in the second quarter.
  • Analyst recommendations include 12 buys, 3 holds, and 4 sells for Teradyne.

“`


Teradyne Inc on Smartkarma

Analyst coverage of Teradyne Inc on Smartkarma shows positive sentiment towards the company’s future prospects. Baptista Research, a reputable provider on the platform, released two insightful reports highlighting Teradyne’s strengths. In the first report titled “Teradyne’s Robot Revolution & AI Synergy Make It a Must-Buy for 2025!“, Teradyne’s financial performance for the first quarter of 2025 was deemed mixed but promising. The company exceeded revenue expectations, achieved non-GAAP earnings per share surpassing guidance, and boasted a gross margin above expectations due to a favorable product mix.

Continuing with a bullish outlook, the second report by Baptista Research, titled “Teradyne’s Bold Robotics Strategy – A Disruptive Move That Could Outpace Industry Giants? – Major Drivers“, highlighted the company’s significant achievements in the fourth quarter and full-year 2024. Strong results in Teradyne’s Semiconductor Test segment, driven by demand in AI computing and recovery in the mobile market, particularly stood out. With a focus on AI accelerator ASICs, networking, and high-bandwidth memory (HBM) DRAM, Teradyne’s strategic moves in robotics are positioned to challenge industry giants, making it an attractive prospect for investors.


A look at Teradyne Inc Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth3
Resilience4
Momentum4
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Teradyne Inc, a company that specializes in designing, manufacturing, and supporting semiconductor test products and services globally, holds a mixed outlook based on the Smartkarma Smart Scores. While the company scores moderately in the categories of Value and Dividend with scores of 2, indicating average performance in these areas, its Growth score stands at a slightly higher 3. Teradyne shines in terms of Resilience and Momentum, scoring 4 in both categories, reflecting strong performance in these aspects. This suggests that the company may have a promising future with potential for growth and demonstrated strength in navigating market challenges.

With a diversified portfolio of semiconductor test systems, military/aerospace test instrumentation, circuit-board test and inspection systems, and automotive diagnostic and test systems, Teradyne Inc seems well-positioned to capitalize on its strengths in resilience and momentum. While the company may need to focus on enhancing its value and dividend offerings to further solidify its market position, the positive performance in growth, resilience, and momentum indicate a potential for long-term success and stability in the competitive semiconductor industry.


Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.


 

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Analytics and News
  • ✓ Events & Webinars