Monty Rakusen Summary Following my coverage on Teradyne (NASDAQ:TER) in Nov’23, which I recommended a hold rating as I was not sure when TER would start to print positive growth. This post is to provide an update on my thoughts on the business and stock. I upgraded my rating from hold to buy as the outlook for a recovery is much more clear in 1Q24. Specifically, management has put out very encouraging 2Q24 guidance, and I have turned more bullish on the underlying AI tailwind impact on TER. Investment t ...

Investment Rating - The report maintains a positive outlook for the company, with expectations for revenue growth in the low single digits for the year [2][58]. Core Insights - The company reported Q1 2024 revenue of $600 million, exceeding guidance, driven by strong demand in memory and SoC testing due to AI applications [2][58]. - The semiconductor testing market's total addressable market (TAM) for computing is now estimated at $1.5 billion, up from $1.4 billion, while the memory test TAM is revised to $1.2 billion to $1.3 billion, driven by strong HBM demand [2][58]. - The company expects Q2 2024 revenue to be between $665 million and $725 million, with a non-GAAP gross margin of 57% to 58% [2][58]. Summary by Sections Overall Performance - Q1 2024 revenue was $600 million, down 8.33% year-over-year and 4.69% quarter-over-quarter, but above the guidance range [2][47]. - Non-GAAP gross margin was 56.6%, a decrease of 1.1 percentage points year-over-year but stable quarter-over-quarter [2][48]. - Net profit for Q1 2024 was $64 million, reflecting a year-over-year decline of 23.11% and a quarter-over-quarter decline of 45.18% [2][49]. Downstream Analysis - Semiconductor testing market revenue was $412 million, down 1% year-over-year and 4.4% quarter-over-quarter, with demand in MCU and industrial markets being weak [2][33]. - System testing market revenue was $75 million, flat year-over-year but down 12.8% quarter-over-quarter, primarily due to weak SLT/mobile demand [2][34]. - Wireless testing market revenue was $25 million, down 36% year-over-year, reflecting a decline in demand from PCs and smartphones [2][35]. - Industrial automation market revenue was $88 million, down 2% year-over-year but up 31.8% quarter-over-quarter, with MiR sales increasing by 16% [2][36]. Company Q1 Summary - AI-driven demand for memory and SoC testing was strong, and the robotics business met expectations for the third consecutive quarter [2][82]. - The company announced a strategic partnership with NVIDIA to develop UR and MiR1200 Pallet Jack [2][82]. Strategic Partnership Update - Technoprobe will acquire the company's DIS business, and the company will invest in Technoprobe to gain a 10% stake [2][96]. Market Size Forecast - The company predicts the semiconductor testing market's TAM for SOC testing to be between $3.6 billion and $4.2 billion, with the memory testing market's TAM revised to $1.25 billion [2][61][95]. Q2 Performance Guidance - The company expects Q2 2024 revenue to be between $665 million and $725 million, with a non-GAAP gross margin of 57% to 58% [2][58].

For the quarter ended March 2024, Teradyne (TER) reported revenue of $599.82 million, down 2.9% over the same period last year. EPS came in at $0.51, compared to $0.55 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $571.79 million, representing a surprise of +4.90%. The company delivered an EPS surprise of +54.55%, with the consensus EPS estimate being $0.33.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File No. 001-06462 TERADYNE, INC. (Exact name of registrant as specified in its charter) Massachusetts 04-2272148 (State or Ot ...

Teradyne (TER) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.Analysts' growing optimism on the earnings prospects of this maker of wireless products, data storage and equipment to test semiconductors is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a stro ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

April 25, 2024 This presentation contains forward-looking statements including statements regarding Teradyne's future business prospects, financial performance or position and results of operations. You can identify forward-looking statements by their use of forward-looking words such as "anticipate," "expect," "plan," "could," "may," "will," "believe," "estimate," "goal" or other comparable terms. Forward-looking statements in this presentation address various matters, including statements regarding Terady ...

Teradyne (TER) reported first-quarter 2024 earnings of 51 cents per share, surpassing the Zacks Consensus Estimate by 54.55% but declining 7.3% year over year.Revenues of $600 million beat the Zacks Consensus Estimate by 4.9% but declined 2.9% year over year.Quarter DetailsRevenues from Semiconductor Test platforms, System Test business, Wireless Test business and Robotics were $412 million (68.7% of total revenues), $75 million (12.5%), $25 million (4.2%) and $88 million (14.7%), respectively.Strong moment ...

Financial Data and Key Metrics Changes - In Q1 2024, the company reported sales of $600 million, exceeding guidance by $10 million, with non-GAAP EPS of $0.51, above the guidance of $0.38 [11] - Non-GAAP gross margins were 56.6%, above guidance due to favorable product mix and improved operational efficiencies [31] - Non-GAAP operating profit was approximately 15% [32] Business Line Data and Key Metrics Changes - Semi Test revenue was $412 million, with SoC revenue contributing $302 million and memory $110 million, driven by strong demand in DRAM and HBM [13] - Robotics revenue was $88 million, with UR contributing $68 million and MiR $20 million, with expectations for sequential growth in Q2 [54] - Wireless Test revenue was $25 million, reflecting continued weakness in PC and mobile markets, but expected to improve in Q2 due to gaming and the ramp of WiFi 7 [14] Market Data and Key Metrics Changes - The total addressable market (TAM) for memory testing is now expected to grow to $1.25 billion, with HBM demand projected to grow 5x from last year's level [6][17] - The compute TAM for 2024 is estimated at $1.5 billion, up from $1.4 billion, while estimates for auto, industrial, and mobile markets have been lowered [25] - The company expects low single-digit growth for the full year compared to 2023, with a more balanced revenue distribution between the first and second halves of the year [57] Company Strategy and Development Direction - The company is focusing on AI as a transformational growth driver across all business lines, with significant investments in R&D to capture opportunities in AI applications [7][29] - The robotics segment aims for 10% to 20% growth in 2024, driven by new offerings and expanding OEM solutions [26] - The company is cautious about the second half of the year due to expected continued weakness in the mobile market, while remaining optimistic about AI-driven demand [10][25] Management's Comments on Operating Environment and Future Outlook - Management noted that while the first half of 2024 shows strength in AI-driven applications, visibility into the second half remains limited due to ongoing weakness in mobile and industrial markets [10][59] - The company is optimistic about the midterm outlook, driven by increased spending in the semiconductor industry and the potential for recovery in industrial and automotive markets [10][39] - Management emphasized the importance of AI in driving future growth, particularly in edge applications and robotics [29][29] Other Important Information - The company announced a strategic partnership with Technoprobe, which includes the sale of its DIS business and an equity investment [19][58] - Free cash flow was an outflow of $37 million in Q1, with share repurchases of $22 million and dividends of $18 million [34] - The company expects to limit share buybacks in 2024 to offset dilution from equity compensation [19] Q&A Session Summary Question: What is the outlook for utilization rates in the next few quarters? - Management indicated that utilization rates are expected to continue increasing, with efficient use of existing equipment [41] Question: How does the growth in the accelerator market impact the compute TAM? - The compute TAM is constrained due to new entrants converting idle testers from mobile to compute, but significant ramps are expected [66] Question: What is the split between DRAM and NAND in the memory market? - The expected split for the memory TAM is approximately 80% DRAM and 20% NAND, with HBM projected to contribute around $500 million [73] Question: What is the expected impact of edge AI on the smartphone market? - Management anticipates that the complexity of processors for smartphones will increase significantly by 2025, impacting Teradyne's Test business positively [104] Question: How does the company view the current macro environment for robotics? - The macro environment remains weak, but the company is optimistic about long-term growth potential in the robotics market due to low penetration rates [122]

Teradyne Reports First Quarter 2024 Results | | | Q1'24 | | Q1'23 | Q4'23 | | | --- | --- | --- | --- | --- | --- | --- | | Revenue (mil) | $ | 600 | $ | 618 | $ | 671 | | GAAP EPS | $ | 0.40 | $ | 0.50 | $ | 0.72 | | Non-GAAP EPS | $ | 0.51 | $ | 0.55 | $ | 0.79 | NORTH READING, Mass. – April 24, 2024 – Teradyne, Inc. (NASDAQ: TER) reported revenue of $600 million for the first quarter of 2024 of which $412 million was in Semiconductor Test, $75 million in System Test, $25 million in Wireless Test and $88 ...