Teradyne, Inc. (NASDAQ: TER ) is about to report its Q3 earnings on the 23 rd of October, so I decided to go through the numbers and what I would like to see going forward. I am still MSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time. Analyst's Disclosure: I/we have no ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sellside) analysts often affect a stock's price, do they really matter? 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 brokerag ...

Investment Rating - The report assigns a positive outlook for Teradyne, indicating that the company is expected to outperform the benchmark index by 10-20% in the next six months [124]. Core Insights - Teradyne's Q2 FY2024 results exceeded expectations, with revenue of $730 million, a year-over-year increase of 6.73% and a quarter-over-quarter increase of 21.67% [7][41]. - The company anticipates a modest revenue growth in FY2024, projecting a low single-digit percentage increase compared to the previous year, with a significant contribution from the second half of the year [40][59]. - The semiconductor testing market is expected to remain stable, with a projected market size of $3.6 to $4.2 billion for SOC testing in 2024 [30][58]. Summary by Sections Overall Performance - In Q2 FY2024, Teradyne achieved a gross margin of 58.3%, which is a slight decline of 0.5 percentage points year-over-year but an increase of 1.7 percentage points quarter-over-quarter [7][8]. - The net profit for the quarter was $186 million, reflecting a year-over-year increase of 55.16% and a quarter-over-quarter increase of 190.16% [7][8]. Performance by Product Segments - Semiconductor testing revenue reached $543 million, up 14% year-over-year and 31.8% quarter-over-quarter, driven by strong demand in computing and ADAS [26][29]. - System testing revenue was $61 million, down 36% year-over-year and 18.7% quarter-over-quarter, primarily due to weak demand in the SLT/mobile segment [26][29]. - Wireless testing revenue was $36 million, down 17% year-over-year but up 44% quarter-over-quarter, with growth in Wi-Fi 7 demand offset by declines in mobile and UWB [26][29]. - Industrial automation revenue was $90 million, up 26% year-over-year and 2.3% quarter-over-quarter, driven by a 29% increase in UR sales [26][29]. Market Outlook - The company expects Q3 FY2024 revenue to be between $680 million and $740 million, with a projected non-GAAP gross margin of 58.5% to 59.5% [40][58]. - The robot market is anticipated to grow by 10-20% in 2024, with Teradyne's robotics business expected to break even [40][58]. Financial Guidance - For FY2024, Teradyne expects to achieve a non-GAAP EPS between $0.66 and $0.86, with a full-year revenue growth forecast of low single digits [40][58]. - The company plans to continue investing in engineering and sales to strengthen its market position and expand its market share [46][47].

Core Viewpoint - Teradyne, Inc. reported better-than-expected second-quarter results but provided soft guidance for the third quarter [1]. Financial Performance - Teradyne's second-quarter earnings were 86 cents per share, exceeding the analyst consensus estimate of 77 cents per share [4]. - The company reported quarterly sales of $729.879 million, surpassing the analyst consensus estimate of $701.204 million [4]. Third-Quarter Guidance - For the third quarter, Teradyne expects revenue between $680 million and $740 million, compared to estimates of $717.66 million [2]. - The projected adjusted earnings for the third quarter are between 66 cents and 86 cents per share, against estimates of 86 cents per share [2]. Analyst Ratings and Price Targets - Susquehanna analyst Mehdi Hosseini maintained a Positive rating on Teradyne and raised the price target from $130 to $145 [3]. - Cantor Fitzgerald analyst C J Muse kept a Neutral rating while lowering the price target from $180 to $160 [3]. - Craig-Hallum analyst Christian Schwab downgraded the rating from Buy to Hold, maintaining a price target of $124 [3]. Market Reaction - Following the earnings report, Teradyne shares increased by 1.4%, trading at $126.11 [3]. Business Insights - CEO Greg Smith noted that AI applications have driven increased demand from compute and memory customers, and the robotics business has shown growth both sequentially and year-over-year [5]. - The company anticipates that the deployment of edge AI will bolster demand in its test and robotics sectors in the mid-term [5].

Financial Performance - Teradyne reported $729 88 million in revenue for Q2 2024, a 6 6% YoY increase [1] - EPS for the quarter was $0 86, up from $0 79 in the same period last year [1] - The company delivered a revenue surprise of +3 30% compared to the Zacks Consensus Estimate of $706 55 million [6] - EPS surprise was +13 16%, with the consensus estimate being $0 76 [6] Segment Revenue Breakdown - Semiconductor Test revenue was $543 million, a 14 4% YoY increase, surpassing the $489 07 million estimate [5] - Industrial Automation (Robotics) revenue reached $90 million, a 25 6% YoY increase, but missed the $94 21 million estimate [5] - Wireless Test revenue was $36 million, a 17 9% YoY decline, slightly above the $33 52 million estimate [5] - Systems Test revenue was $61 million, a 35 3% YoY decline, below the $83 27 million estimate [5] Stock Performance and Analyst Outlook - Teradyne shares returned -2 3% over the past month, underperforming the Zacks S&P 500 composite's -0 3% change [4] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [4] Key Metrics and Investor Focus - Revenue and earnings changes YoY, along with comparisons to Wall Street expectations, are critical for investors to assess stock price performance [2][3] - Key metrics monitored by Wall Street analysts provide a more accurate picture of the company's financial health [3]

Teradyne, Inc. (NASDAQ:TER) Q2 2024 Earnings Conference Call July 25, 2024 8:30 AM ET Company Participants Traci Tsuchiguchi - Vice President of Investor Relations Greg Smith - President and Chief Executive Officer Sanjay Mehta - Vice President and Chief Financial Officer Conference Call Participants C.J. Muse - Cantor Fitzgerald Timothy Arcuri - UBS Mehdi Hosseini - SIG Vivek Arya - Bank of America Securities Krish Sankar - TD Cowen Toshiya Hari - Goldman Sachs Joseph Moore - Morgan Stanley Samik Chatterje ...

• Revenue of $730 million in Q2'24, up 7% from Q2'23 Guidance for the third quarter of 2024 is revenue of $680 million to $740 million, with GAAP net income of $0.62 to $0.82 per diluted share and non-GAAP net income of $0.66 to $0.86 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization and amortization on our investment in Technoprobe, as well as the related tax impact on non-GAAP adjustments. In addition to disclosing results that are determined in accordance with GAAP, Ter ...

Company Performance - Teradyne's shares increased by 0.4% over the last month, outperforming the Computer and Technology sector's loss of 3.17% and underperforming the S&P 500's gain of 2.14% [1] - Teradyne's upcoming earnings report is scheduled for July 24, 2024, with projected EPS of $0.76, indicating a 3.8% decline year-over-year, while revenue is estimated at $703.04 million, reflecting a 2.72% increase from the prior year [2] - The most recent trading day saw Teradyne close at $149.52, down 1.86%, which lagged behind the S&P 500's daily loss of 0.78% [6] Financial Metrics - The Zacks Consensus Estimates project Teradyne's full-year earnings at $3.05 per share and revenue at $2.77 billion, showing increases of 4.1% and 3.66% respectively from the previous year [7] - Teradyne's PEG ratio is currently 2.86, compared to the Electronics - Testing Equipment industry's average PEG ratio of 2.81 [4] - The Forward P/E ratio for Teradyne stands at 49.89, indicating a premium over its industry's Forward P/E of 25.56 [9] Industry Insights - The Electronics - Testing Equipment industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 65, placing it in the top 26% of over 250 industries [10] - The Zacks Rank system indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [5] - The Zacks Rank for Teradyne is currently 2 (Buy), with a historical average annual return of +25% for 1 ranked stocks since 1988 [8]

Core Viewpoint - Teradyne is positioned to continue its earnings-beat streak, particularly in light of its recent performance and positive earnings estimates [1][5]. Earnings Performance - In the last reported quarter, Teradyne achieved earnings of $0.51 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, resulting in a surprise of 54.55% [2]. - In the previous quarter, the company reported earnings of $0.79 per share against an expected $0.72 per share, delivering a surprise of 9.72% [2]. Earnings Estimates and Predictions - Recent estimates for Teradyne have been increasing, indicating a bullish sentiment among analysts [4]. - The company currently has an Earnings ESP of +5.26%, suggesting a strong potential for an earnings beat in the upcoming report [7]. - The next earnings report for Teradyne is anticipated to be released on July 24, 2024 [7]. Zacks Rank and Earnings ESP - Teradyne holds a Zacks Rank of 2 (Buy), which, when combined with its positive Earnings ESP, indicates a high likelihood of another earnings beat [7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time [5].

Wall Street expects a year-over-year decline in earnings on higher revenues when Teradyne (TER) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditi ...