Teradyne Set to Release Earnings Amid Strong Market Performance
Teradyne, Inc. (TER), based in North Reading, Massachusetts, is a prominent player in the semiconductor industry, specializing in automated test systems and robotics products. With a market cap of $22.3 billion, Teradyne provides a variety of test equipment services, including semiconductor test systems, military and aerospace test instruments, circuit-board inspection systems, and automotive diagnostic solutions. The company is poised to announce its fiscal fourth-quarter earnings for 2024 on Tuesday, February 4.
Profit Expectations Rise Ahead of Earnings Report
As the earnings announcement approaches, analysts predict Teradyne will report a profit of $0.90 per share on a diluted basis. This figure reflects a notable increase of 13.9% compared to $0.79 per share from the same quarter last year. Notably, Teradyne has consistently exceeded Wall Street’s earnings per share (EPS) estimates in its past three quarterly reports.
Full-Year and Future Earnings Forecasts
For the entirety of fiscal 2024, analysts anticipate Teradyne’s EPS will reach $3.17, marking an 8.2% increase from $2.93 in fiscal 2023. Looking ahead, the company’s EPS is projected to rise significantly to $4.11 in fiscal 2025, representing a year-over-year growth of 29.7%.
Stock Performance Outshines Major Indices
Over the past year, TER stocks have outperformed the S&P 500’s ($SPX) gain of 24.4%, with Teradyne shares rising by 29.5%. It has also surpassed the Technology Select Sector SPDR Fund’s (XLK) growth of 23.9% during the same period.
Strong Demand and New Partnerships Fuel Growth
Teradyne’s robust performance stems from a push in AI-driven demand and new opportunities in the robotics sector. The introduction of products like the Universal Robots heavy-payload robots and the AI-enabled MiR1200 Pallet Jack has strengthened its market position. Additionally, a recent collaboration with NVIDIA Corporation (NVDA) has further enhanced Teradyne’s automation capabilities.
Recent Earnings Update and Analyst Ratings
On October 23, Teradyne released its Q3 results, which led to an over 11% drop in shares during the next trading session. Despite this decline, its adjusted EPS of $0.90 exceeded Wall Street’s expectations of $0.78. The company reported revenue of $737.3 million, surpassing predictions of $714.1 million. For Q4, Teradyne anticipates an adjusted EPS between $0.80 and $0.97, with expected revenue ranging from $710 million to $760 million.
Analysts view TER stock positively, with a consensus rating of “Strong Buy.” Among 16 analysts, 12 support the “Strong Buy” recommendation, three suggest a “Hold,” and one has a “Moderate Sell” stance. The average price target from analysts sits at $141.19, suggesting a potential upside of 2.9% based on current stock levels.
On the date of publication,
Neha Panjwani
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy
here.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
