UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Common Stock, par value $0.125 per share TER Nasdaq Stock Market LLC 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 June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |--------------------------------------------------------------------------------------------|------------- ...

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 ...

58.8% 56.6% 58.3% 40% 45% 50% 55% 60% Q2'23 Q1'24 Q2'24 57% - 58% Q2'24 Guidance Range Quarterly Revenue Gross Margin % Non-GAAP EPS(1) $0.79 $0.51 $0.86 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 Q2'23 Q1'24 Q2'24 $0.64 - $0.84 Q2'24 Guidance Range | --- | --- | --- | |--------------------------------------------------------------------|-------------------------------------------------------------|---------------------------------------------------------------------------| | | | | | • Semi Test streng ...

• 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 ...

This quarterly report represents an earnings surprise of 13.16%. A quarter ago, it was expected that this maker of wireless products, data storage and equipment to test semiconductors would post earnings of $0.33 per share when it actually produced earnings of $0.51, delivering a surprise of 54.55%. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. What's Next ...

The maker of wireless products, data storage and equipment to test semiconductors's shares have seen an increase of 0.4% over the last month, surpassing the Computer and Technology sector's loss of 3.17% and falling behind the S&P 500's gain of 2.14%. Investors will be eagerly watching for the performance of Teradyne in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 24, 2024. The company's upcoming EPS is projected at $0.76, signifying a 3.8% drop compared to t ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Teradyne (TER) , which belongs to the Zacks Electronics - Testing Equipment industry. This maker of wireless products, data storage and equipment to test semiconductors has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 32.13%. For the last reported quar ...