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 ...

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]

[First Quarter 2024 Financial Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20Highlights) Teradyne's Q1 2024 performance exceeded guidance, driven by strong AI-related demand in memory and networking, despite softness in mobility [Performance Summary](index=1&type=section&id=Performance%20Summary) Teradyne reported Q1 2024 revenue of $600 million, a 3% decrease year-over-year, with GAAP EPS of $0.40 and non-GAAP EPS of $0.51, exceeding guidance due to AI-driven demand Q1 2024 Key Financial Metrics (Millions USD) | | Q1'24 | Q1'23 | Q4'23 | | :--- | :--- | :--- | :--- | | **Revenue** | $600 | $618 | $671 | | **GAAP EPS** | $0.40 | $0.50 | $0.72 | | **Non-GAAP EPS** | $0.51 | $0.55 | $0.79 | Q1 2024 Revenue by Segment (Millions USD) | Segment | Revenue | | :--- | :--- | | Semiconductor Test | $412 | | System Test | $75 | | Wireless Test | $25 | | Robotics | $88 | - Revenue and earnings for the quarter surpassed the high-end of the company's guidance[4](index=4&type=chunk) - Strong year-over-year growth in memory test was counteracted by ongoing softness in the mobility market[4](index=4&type=chunk) [Management Commentary and Business Outlook](index=1&type=section&id=Management%20Commentary%20and%20Business%20Outlook) The CEO attributed the strong quarter to AI-driven demand in memory and networking, which offset mobility weakness, with Robotics expected to grow through the year - CEO Greg Smith stated that greater than expected demand in memory and networking, driven by Artificial Intelligence (AI) applications, was a key factor in exceeding revenue and earnings guidance[2](index=2&type=chunk) - In Robotics, the company anticipates that new products, new applications, and enhancements to its global distribution channel will drive growth for the remainder of the year[2](index=2&type=chunk) Q2 2024 Guidance | Metric | Guidance Range | | :--- | :--- | | **Revenue** | $665M - $725M | | **GAAP Net Income per Share** | $0.90 - $1.10 | | **Non-GAAP Net Income per Share** | $0.64 - $0.84 | [Financial Statements](index=4&type=section&id=Financial%20Statements) This section provides a detailed overview of Teradyne's financial position, operating results, and cash flows for the first quarter of 2024 [Condensed Consolidated Statements of Operations](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q1 2024, Teradyne reported net revenues of $599.8 million, a decrease from the prior year, with net income of $64.2 million and diluted EPS of $0.40 Statement of Operations Highlights (Thousands USD, except per share data) | Account | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net revenues** | $599,819 | $617,529 | | **Gross profit** | $339,282 | $356,420 | | **Income from operations** | $77,771 | $92,864 | | **Net income** | $64,197 | $83,531 | | **Diluted EPS** | $0.40 | $0.50 | | **Cash dividend per share** | $0.12 | $0.11 | - Restructuring and other charges for Q1 2024 totaled **$4.4 million**, which included **$2.2 million** in acquisition and divestiture expenses and **$2.0 million** in employee severance[12](index=12&type=chunk) [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2024, Teradyne's total assets were $3.41 billion, with cash and cash equivalents at $707.4 million, and shareholders' equity increasing to $2.56 billion Balance Sheet Highlights (Thousands USD) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $707,403 | $757,571 | | **Total current assets** | $2,065,393 | $2,162,035 | | **Total assets** | $3,410,720 | $3,486,824 | | **Total current liabilities** | $550,720 | $659,951 | | **Total liabilities** | $852,891 | $960,927 | | **Shareholders' equity** | $2,557,829 | $2,525,897 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2024, net cash from operating activities was $7.3 million, a significant decrease year-over-year, with total cash and cash equivalents decreasing by $50.2 million Cash Flow Summary (Thousands USD) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net cash from operating activities** | $7,279 | $19,336 | | **Net cash used for investing activities** | ($24,020) | ($94,863) | | **Net cash used for financing activities** | ($36,668) | ($129,501) | | **Decrease in cash and cash equivalents** | ($50,168) | ($205,565) | - Key financing activities in Q1 2024 included **$22.1 million** for the repurchase of common stock and **$18.4 million** for dividend payments[15](index=15&type=chunk) [GAAP to Non-GAAP Reconciliation](index=9&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) This section provides a reconciliation of Teradyne's GAAP financial measures to non-GAAP measures for Q1 2024 and Q2 2024 guidance [Q1 2024 GAAP to Non-GAAP Earnings Reconciliation](index=9&type=section&id=Q1%202024%20GAAP%20to%20Non-GAAP%20Earnings%20Reconciliation) For Q1 2024, Teradyne reconciled its GAAP net income of $64.2 million ($0.40 per diluted share) to a non-GAAP net income of $82.5 million ($0.51 per diluted share), primarily adjusting for a foreign exchange option loss and amortization of acquired intangibles Q1 2024 GAAP to Non-GAAP Reconciliation (Millions USD, except per share data) | Description | Net Income | Diluted EPS | | :--- | :--- | :--- | | **GAAP** | **$64.2** | **$0.40** | | Loss on foreign exchange option | $13.9 | $0.09 | | Acquired intangible assets amortization | $4.7 | $0.03 | | Restructuring and other | $4.4 | $0.03 | | Other adjustments (net) | ($4.7) | ($0.04) | | **Non-GAAP** | **$82.5** | **$0.51** | - For the quarter ended March 31, 2024, selling and administrative expenses included a **$1.7 million** equity charge for modifying executives' retirement agreements[18](index=18&type=chunk) [Q2 2024 Guidance Reconciliation](index=10&type=section&id=Q2%202024%20Guidance%20Reconciliation) The company provided a reconciliation for its Q2 2024 EPS guidance, adjusting the GAAP range of $0.90 to $1.10 to a non-GAAP range of $0.64 to $0.84, mainly by excluding an anticipated gain on divestiture Q2 2024 GAAP to Non-GAAP EPS Guidance Reconciliation | Description | Low End | High End | | :--- | :--- | :--- | | **GAAP net income per diluted share** | **$0.90** | **$1.10** | | Exclude gain on divestiture | ($0.36) | ($0.36) | | Exclude acquired intangible assets amortization | $0.03 | $0.03 | | Non-GAAP tax adjustments | $0.07 | $0.07 | | **Non-GAAP net income per diluted share** | **$0.64** | **$0.84** | [Other Information](index=2&type=section&id=Other%20Information) This section provides background on Teradyne's business and a cautionary statement regarding forward-looking information [About Teradyne](index=2&type=section&id=About%20Teradyne) Teradyne is a global company providing advanced test solutions for semiconductors, electronic systems, and wireless devices, alongside collaborative and mobile robotics - Teradyne's business focuses on advanced test solutions for various electronics and robotics offerings, including collaborative and mobile robots[6](index=6&type=chunk) - In 2023, Teradyne's revenue was **$2.7 billion**, and it employs over **6,600** people worldwide[6](index=6&type=chunk) [Safe Harbor Statement](index=2&type=section&id=Safe%20Harbor%20Statement) This section cautions investors that the press release contains forward-looking statements about future business and financial performance, highlighting that actual results may differ materially due to various risks and uncertainties - The release contains forward-looking statements regarding financial guidance and business prospects, which involve risks and uncertainties[7](index=7&type=chunk) - Identified risk factors include macroeconomic slowdowns, supply chain shortages, the ability to grow the Robotics business, and the impact of U.S. export controls related to China[7](index=7&type=chunk)[8](index=8&type=chunk) - The company disclaims any obligation to update forward-looking statements[9](index=9&type=chunk)

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 ...

Teradyne (TER) is scheduled to report its first-quarter 2024 results on Apr 24.TER benefits from its robust and diversified portfolio particularly with the broader adoption of 3-nanometer technology in the mobility space and the launch of AI-supported smartphones that is expected to drive test demand.In memory tests, the expansion of DDR5 and HBM devices used in data center applications to bolster retooling capabilities is expected to have contributed to its top-line growth in the to-be-reported quarter.How ...

Teradyne (TER) is strengthening its footprint in the field of robotics on the back of its recent partnership with NVIDIA (NVDA) to integrate advanced AI capabilities into its automation solutions.Teaming up with NVIDIA, Teradyne's robotics division, which comprises Universal Robots (UR) and Mobile Industrial Robots (MiR), is set to transform automation applications with AI-powered technologies.Teradyne’s UR division seamlessly integrated NVIDIA’s accelerated computing into its collaborative robot (cobot) pl ...