Teradyne (TER) is scheduled to report its first-quarter 2025 earnings results on April 28.For the first quarter of 2025, TER expects revenues between $660 million and $700 million. The company anticipates non-GAAP earnings between 58 cents and 68 cents per share.The Zacks Consensus Estimate for revenues is pegged at $683.90 million, indicating an increase of 14.02% from the year-ago quarter’s reported value.The consensus mark for first-quarter earnings is pegged at 61 cents per share, unchanged over the pas ...

Wall Street analysts forecast that Teradyne (TER) will report quarterly earnings of $0.61 per share in its upcoming release, pointing to a year-over-year increase of 19.6%. It is anticipated that revenues will amount to $683.93 million, exhibiting an increase of 14% compared to the year-ago quarter.The current level reflects a downward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised thei ...

Teradyne (TER) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 28. On th ...

Company Performance - Teradyne's stock closed at $73.65, reflecting a +1.88% increase from the previous day, outperforming the S&P 500's gain of 1.81% [1] - Over the last month, Teradyne's shares have decreased by 15.28%, underperforming the Computer and Technology sector's loss of 7.27% and the S&P 500's loss of 6.14% [2] Upcoming Earnings - Teradyne's earnings report is scheduled for April 28, 2025, with projected EPS of $0.61, indicating a 19.61% increase year-over-year [3] - The consensus estimate for revenue is $683.57 million, reflecting a 13.96% rise from the same quarter last year [3] - For the full year, earnings are projected at $3.38 per share and revenue at $2.99 billion, representing increases of +4.97% and +6.2% respectively from the prior year [4] Analyst Projections - Recent shifts in analyst projections for Teradyne should be monitored, as positive estimate revisions indicate optimism about the company's outlook [5] - The Zacks Rank system currently rates Teradyne as 5 (Strong Sell), with the consensus EPS estimate having decreased by 10.97% over the past month [7] Valuation Metrics - Teradyne is trading with a Forward P/E ratio of 21.4, which is a premium compared to the industry's average Forward P/E of 16.01 [8] - The company has a PEG ratio of 3.2, while the Electronics - Miscellaneous Products industry has an average PEG ratio of 1.41 [8] Industry Context - The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector and currently holds a Zacks Industry Rank of 142, placing it in the bottom 43% of over 250 industries [9]

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about Teradyne (TER) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Teradyne currently has an average brokerage recommendation (ABR) ...

Company Performance - Teradyne's stock closed at $88.51, reflecting a -0.41% change from the previous trading day, underperforming compared to the S&P 500's daily gain of 1.08% [1] - The stock has dropped by 22.78% in the past month, which is worse than the Computer and Technology sector's loss of 13.17% and the S&P 500's loss of 8.26% [2] - Upcoming earnings per share (EPS) is projected at $0.61, indicating a 19.61% increase year-over-year, with revenue expected to be $683.57 million, reflecting a 13.96% growth [3] Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $3.43 per share and revenue at $3.02 billion, showing increases of +6.52% and +7.19% respectively from the previous year [4] - Recent changes to analyst estimates suggest a positive outlook for the company's business, as these revisions often reflect short-term business trends [4] Valuation Metrics - Teradyne is currently trading at a Forward P/E ratio of 25.93, which is a premium compared to its industry's Forward P/E of 19.45 [7] - The PEG ratio for Teradyne is 3.88, significantly higher than the industry average PEG ratio of 1.44 [7] Industry Context - The Electronics - Miscellaneous Products industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 152, placing it in the bottom 40% of over 250 industries [8] - Historically, the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8] Analyst Ratings - The Zacks Rank system currently rates Teradyne as 5 (Strong Sell), with a recent 12.42% decrease in the consensus EPS estimate over the last 30 days [6]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Teradyne (TER), and highlights the potential misalignment of interests between brokerage firms and retail investors [1][4]. Brokerage Recommendation Summary - Teradyne has an average brokerage recommendation (ABR) of 1.69, indicating a consensus between Strong Buy and Buy, based on 16 brokerage firms' recommendations [2]. - Out of the 16 recommendations, 12 are classified as Strong Buy, accounting for 75% of the total recommendations [2]. Analysis of Brokerage Recommendations - The article suggests that relying solely on brokerage recommendations may not be prudent, as studies indicate these recommendations often fail to guide investors effectively towards stocks with high price appreciation potential [4]. - Brokerage firms tend to exhibit a strong positive bias in their ratings, with a ratio of five "Strong Buy" recommendations for every "Strong Sell" [5]. Zacks Rank Comparison - Zacks Rank, a proprietary stock rating tool, categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, which are more indicative of near-term stock price movements [7][10]. - The Zacks Rank is distinct from ABR, as it is a quantitative model that reflects timely earnings estimate revisions, while ABR may not always be up-to-date [8][11]. Teradyne's Earnings Outlook - The Zacks Consensus Estimate for Teradyne has decreased by 12.4% over the past month to $3.43, indicating growing pessimism among analysts regarding the company's earnings prospects [12]. - This decline in earnings estimates has resulted in a Zacks Rank of 5 (Strong Sell) for Teradyne, suggesting caution despite the Buy-equivalent ABR [13].

Company Performance - Teradyne's stock closed at $88.87, reflecting a -1.44% change from the previous session, underperforming compared to the S&P 500's daily loss of 1.07% [1] - Over the past month, Teradyne's shares have decreased by 20.38%, which is worse than the Computer and Technology sector's loss of 11.12% and the S&P 500's loss of 7.03% [2] - The upcoming earnings disclosure is projected to show earnings of $0.61 per share, indicating a year-over-year growth of 19.61%, with revenue expected to be $683.57 million, a 13.96% increase from the same quarter last year [3] Analyst Estimates - For the full year, earnings are projected at $3.43 per share and revenue at $3.06 billion, reflecting changes of +6.52% and +8.36% respectively from the previous year [4] - Recent changes in analyst estimates for Teradyne suggest a shifting business landscape, with positive revisions indicating a favorable business outlook [4] Valuation Metrics - Teradyne is currently trading at a Forward P/E ratio of 26.31, which is higher than the industry average of 19.46, suggesting a premium valuation [7] - The company has a PEG ratio of 3.93, significantly above the industry average PEG ratio of 1.45, indicating that Teradyne's stock may be overvalued relative to its expected earnings growth [8] Industry Context - The Electronics - Miscellaneous Products industry, which includes Teradyne, is ranked 149 out of over 250 industries, placing it in the bottom 41% of the Zacks Industry Rank [9] - Research indicates that industries in the top 50% of the Zacks Rank outperform those in the bottom half by a factor of 2 to 1 [9]

Core Viewpoint - Teradyne's shares declined by 21.4% following a negative update on trading conditions during its analyst day presentation, indicating significant market concerns about future performance [1]. Company Summary - Teradyne operates primarily in the automated test systems market for semiconductors and data electronics, which are cyclical and influenced by capital spending in key industries such as consumer electronics, industrial, automotive, aerospace, and defense [2]. - The company has revised its second-quarter and full-year revenue guidance downward due to uncertainties surrounding tariffs and trade restrictions, reflecting a slowdown in demand [2][4]. - The revised second-quarter revenue growth is now expected to be flat to down 10% from the first quarter, a significant change from the previous expectation of 5% to 10% growth [4]. - Full-year revenue growth is now projected to be up 5% to 10%, down from an earlier expectation of 15% [4]. Market Conditions - Management noted that while there have been no cancellations, there are delays and reviews of capital spending, which could indicate a broader trend of potential cancellations starting with push-outs [3]. - The macroeconomic uncertainty is affecting corporate and consumer decision-making, as seen in other companies like Delta Air Lines and 3M, which have also reported near-term impacts on their businesses [4].

Core Insights - The article discusses Teradyne's (NASDAQ: TER) estimated fair value of $130.8, based on a mid-term model projecting revenue growth of 13% to 20% through 2026 [1] Group 1: Company Analysis - Teradyne has a strong economic moat attributed to its "Fundamental Options" investment style, which combines fundamental analysis with options strategies [1] - The company employs various investment strategies, including income-oriented investments, growth at a reasonable price, deep value based on discounted cash flow, and dividend aristocrats [1] - Teradyne's investment approach includes long-term stock investments and 20-25 options strategies for purposes such as hedging, bullish substitutes, neutral trades, trading volatility, and earnings-related trades [1] Group 2: Analyst Background - The analyst has a background in software development, which informs their focus on technology investments [1] - Teaching and coaching in various life areas, including investing, is a passion for the analyst, who has authored a free local investing newsletter [1]