Teradyne Inc. Earnings Cheat Sheet: Weak Revenue and Net Income

S&P 500 (NYSE:SPY) component Teradyne Inc. (NYSE:TER) posted a decrease in profit as revenue declined. Teradyne develops, designs, manufactures and sells automatic test systems and solutions used to test complex electronics.

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Teradyne Earnings Cheat Sheet for the Third Quarter

Results: Net income for Teradyne Inc. fell to $54.7 million (25 cents per share) vs. $147.3 million (66 cents per share) a year earlier. This is a decline of 62.8% from the year earlier quarter.

Revenue: Fell 30% to $344.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: TER reported adjusted net income of 34 cents per share. By that measure, the company beat the mean estimate of 23 cents per share. It beat the average revenue estimate of $326.9 million.

Quoting Management: “Record hard disk drive test shipments in the third quarter combined with our lean operating model to produce our seventh consecutive quarter of above model profitability,” said Mike Bradley, Teradyne President and CEO. “Semiconductor test orders and revenue softened in line with industry trends during the quarter, but we continued to see relative strength in the mobility segments driven by power management, image sensors, wireless and mobile processors.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 9 cents in the second quarter, by 3 cents in the first quarter, and by 13 cents in the fourth quarter of the last fiscal year.

The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 27.1% from the year earlier quarter.

Revenue has fallen in the past two quarters. In the second quarter, revenue declined 9.7% to $410.5 million from the year earlier quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 17 cents per share, down from 39 cents ninety days ago. For the fiscal year, the average estimate has moved down from $1.62 a share to $1.26 over the last ninety days.

Competitors to Watch: LTX-Credence Corporation (NASDAQ:LTXC), Verigy Ltd. (NASDAQ:VRGY), Advantest Corp. (NYSE:ATE), Aehr Test Systems (NASDAQ:AEHR), Nanometrics Incorporated (NASDAQ:NANO), Agilent Technologies Inc. (NYSE:A), Aetrium, Inc. (NASDAQ:ATRM), Cohu, Inc. (NASDAQ:COHU), Rudolph Technologies, Inc. (NASDAQ:RTEC), and inTEST Corporation (NASDAQ:INTT).

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(Source: Xignite Financials)