Teradyne(US:TER) ZACKS·2025-04-29 17:35Core Viewpoint - Teradyne reported strong first-quarter 2025 results with significant year-over-year growth in earnings and revenues, driven primarily by the Semiconductor Test division, although the company provided cautious guidance for the second quarter due to demand uncertainties [1][6]. Financial Performance - Non-GAAP earnings for Q1 2025 were 75 cents per share, exceeding the Zacks Consensus Estimate by 22.95% and increasing 47.1% year over year [1]. - Revenues reached $686 million, surpassing the Zacks Consensus Estimate by 0.26% and reflecting a 14.3% year-over-year increase [1]. - The Semiconductor Test platforms generated $543 million in revenue, accounting for 79.2% of total revenues, while Robotics and Product Test contributed $69 million (10.1%) and $74 million (10.8%), respectively [2]. Cost and Margin Analysis - Non-GAAP gross margin improved to 60.6%, an increase of 400 basis points year over year [3]. - Selling and administrative expenses rose 5.4% year over year to $157.3 million, representing 22.9% of revenues, a decrease of 190 basis points year over year [3]. - Engineering and development expenses increased 14.5% year over year to $118.2 million, maintaining a steady percentage of 17.2% of revenues [4]. - Non-GAAP operating income grew 58.9% year over year to $140.8 million, with the operating margin expanding 580 basis points to 20.5% [4]. Balance Sheet and Cash Flow - As of March 30, 2025, cash and cash equivalents totaled $507.8 million, down from $599.7 million at the end of 2024 [5]. - The board authorized an increase in the share repurchase program to $1 billion by the end of 2026 [5]. - Net cash provided by operating activities was $1.61 billion, compared to $2.82 billion in the previous quarter [5]. Guidance and Outlook - For Q2 2025, Teradyne expects revenues between $610 million and $680 million, with non-GAAP earnings per share projected between 41 cents and 64 cents, reflecting a cautious outlook amid demand uncertainties [6].