Teradyne Earnings: Here’s Why Investors are Not Happy Now

Teradyne Inc. (NYSE:TER) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 7.17%.

Teradyne Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 44.16% to $0.43 in the quarter versus EPS of $0.77 in the year-earlier quarter.

Revenue: Decreased 21.78% to $428.89 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Teradyne Inc. reported adjusted EPS income of $0.43 per share. By that measure, the company beat the mean analyst estimate of $0.32. It beat the average revenue estimate of $407.85 million.

Quoting Management: “We delivered our 16th consecutive quarter of profitable operations with strong growth in our semiconductor and wireless test businesses,” said CEO, Mike Bradley. “Semiconductor Test orders grew 40% in the quarter driven by the mobile, power management, microcontroller, and memory test sectors. Wireless and Systems Test orders declined in the quarter as customers adjusted their capacity to market demand. We’ve raised our third quarter revenue outlook to reflect these order trends.”

Key Stats (on next page)…

Revenue increased 52.97% from $280.37 million in the previous quarter. EPS increased 377.78% from $0.09 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.63 to a profit $0.6. For the current year, the average estimate has moved down from a profit of $1.42 to a profit of $1.38 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)