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 Details
Revenues 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 momentum in the memory test end-market drove top-line growth. However, continued softness in the mobility sector was a concern.
Teradyne, Inc. Price, Consensus and EPS Surprise
Teradyne, Inc. price-consensus-eps-surprise-chart | Teradyne, Inc. Quote
Gross margin was 56.6%, which contracted 110 basis points (bps) year over year.
In the reported quarter, selling and administrative expenses dropped 1.2% year over year to $149.2 million. As a percentage of revenues, selling and marketing expenses were 24.9%, up 40 bps year over year.
Engineering and development expenses decreased 2.4% year over year to $103.2 million. As a percentage of revenues, engineering and development expenses increased 10 bps on a year-over-year basis to 17.2%.
Balance Sheet & Cash Flow
As of Mar 31, 2024, Teradyne’s cash and cash equivalents (including marketable securities) were $748.7 million, lower than $819.7 million as of Dec 31, 2023.
Net cash provided by operating activities was $7.279 million for the first quarter, down from $248.8 million in the prior quarter.
Guidance
For the second quarter of 2024, Teradyne expects revenues between $665 million and $725 million. The Zacks Consensus Estimate for second-quarter revenues is pegged at $648.38 million, indicating a decline of 5.27% year-over-year.
Non-GAAP earnings are expected between 64 cents and 84 cents per share. The consensus mark for earnings is pegged at 66 cents, up by a penny in the past 30 days.
Zacks Rank & Other Stocks to Consider
Teradyne currently carries a Zacks Rank #2 (Buy).
TER’s shares have declined 7.2% compared with the Zacks Computer and Technology sector’s rise of 7.6% year to date.
Here are some other top-ranked stocks worth considering in the broader sector.
Arista Networks ANET, Criteo CRTO and Pinterest PINS are some better-ranked stocks that investors can consider in the broader sector, each sporting Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 8.2% year to date. ANET is set to report its first-quarter 2024 results on May 7.
Criteo shares have gained 46% year to date. CRTO is set to report its first-quarter 2024 results on May 2.
Pinterest shares have declined 11.3% year to date. PINS is set to report its first-quarter 2024 results on Apr 30.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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