Teradyne Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Teradyne, Inc. (NYSE:TER) will unveil its latest earnings tomorrow, Wednesday, January 23, 2013. Teradyne develops, designs, manufactures and sells automatic test systems and solutions used to test complex electronics.

Teradyne, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of one cent per share, a decline of 93.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 23 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at one cent during the last month. Analysts are projecting profit to rise by 15.8% versus last year to $1.61.

Past Earnings Performance: Last quarter, the company beat estimates by 8 cents, coming in at net income of 53 cents a share versus the estimate of profit of 45 cents a share. It marked the fourth straight quarter of beating estimates.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

A Look Back: In the third quarter, profit rose 61.9% to $88.6 million (39 cents a share) from $54.7 million (25 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 34.6% to $463.4 million from $344.4 million.

Here’s how Teradyne traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Wall St. Revenue Expectations: Analysts are projecting a decline of 16.7% in revenue from the year-earlier quarter to $247.4 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.75 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 5.2% in the first quarter and 33.6% in the second quarter before climbing again in the third quarter.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 36.8% for the last four quarters.

Analyst Ratings: There are 10 out of 12 analysts surveyed (83.3%) rating Teradyne a buy.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)