Teradyne Soars in Robotics: Strong Growth and Promising Future Ahead
A Solid Year for Teradyne Amid Challenges in the Industry
Teradyne (TER) shares have risen 27.1% over the last year, showcasing the company’s strong footing in Robotics and a robust network of partners. This performance is noteworthy compared to the Zacks Electronics – Miscellaneous Products industry, which has seen a significant decline of 28.7% in the same time frame.
In comparison, Teradyne has outshone competitors like ABB (ABBNY) and Omron (OMRNY), holding a leading position in the robotics market. While ABBNY shares saw a modest gain of 27.7%, OMRNY shares dropped sharply by 35.8% over the past year.
Teradyne’s Price and Consensus Trends
Teradyne, Inc. Price Consensus Chart | Teradyne, Inc. Quote
Innovation at the Core of Teradyne’s Robotics Growth
Teradyne is advancing its robotics capabilities by integrating automation technologies and solidifying partnerships. In the third quarter of 2024, the company reported an 8% year-to-date growth in its Robotics segment, significantly outperforming the broader industrial automation market, which experienced average declines exceeding 10%. This success stems from Teradyne’s proactive adaptation to market changes, particularly in robotics.
Even amid a challenging industrial environment, Teradyne continued to excel, especially in its UR (Universal Robots) and MiR (Mobile Industrial Robots) segments. The company attributed its performance to recent product launches, including its heavy-payload robots and the AI-driven MiR1200 Pallet Jack, both of which leverage advanced technology from NVIDIA (NVDA).
Teradyne’s collaboration with NVIDIA has been pivotal in enhancing its automation solutions. The new AI capabilities enable UR’s robots to execute faster path planning and introduce MiR’s AI-powered Pallet Jack for efficient autonomous handling.
In October 2024, Teradyne further expanded its offerings with the launch of UR’s AI Accelerator, which is designed to enhance AI-driven robotics adoption. This toolkit combines hardware and software to boost computational power, further establishing Teradyne’s leading role in robotics innovation.
Positive Earnings Outlook for 2025
Analysts are optimistic about Teradyne’s financial prospects. The Zacks Consensus Estimate for TER’s revenues in 2025 stands at $3.33 billion, projecting an 18.72% increase compared to the previous year. Earnings are expected to rise as well, with a current estimate of $4.11 per share, reflecting a 29.83% year-over-year increase and a recent upward revision of one cent in the past month.
Teradyne has consistently outperformed the Zacks Consensus Estimate, achieving an average earnings beat of 23.20% in the previous four quarters.
Why Teradyne is Considered a Strong Buy
The strength of Teradyne’s diverse portfolio continues to support its growth trajectory. The Robotics division, in particular, is thriving due to the rise of AI-driven automation and innovative product launches that bolster Teradyne’s competitive position.
Currently, TER stock carries a Zacks Rank #1 (Strong Buy), signaling a strong recommendation for investors to consider accumulating it now.
Explore the latest EPS estimates and surprises on Zacks Earnings Calendar.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.