Teradyne Earnings: Revenue Growth Drives Margin, Profit PUMPS UP

S&P 500 (NYSE:SPY) component Teradyne Inc. (NYSE:TER) reported higher profit for the second quarter as revenue showed growth. Teradyne develops, designs, manufactures and sells automatic test systems and solutions used to test complex electronics.

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Teradyne Inc. Earnings Cheat Sheet

Results: Net income for Teradyne Inc. rose to $111.4 million (49 cents per share) vs. $87.3 million (38 cents per share) in the same quarter a year earlier. This marks a rise of 27.7% from the year-earlier quarter.

Revenue: Rose 33.6% to $548.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Teradyne Inc. fell short of the mean analyst estimate of 58 cents per share. It beat the average revenue estimate of $510.9 million.

Quoting Management: “Explosive growth in our LitePoint Wireless Test segment and continued strength for the UltraFLEX in high performance System-on-a-Chip test powered Teradyne’s results in the second quarter,” said Mike Bradley, President and CEO. “LitePoint delivered record orders and revenue as customers continue to embrace its time to market and economic advantages in the fast moving mobility market. After recording a very strong first half, our third quarter outlook reflects seasonally slower industry trends.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 2 cents, and in the fourth quarter of the last fiscal year, it was ahead by 5 cents.

The company’s revenue has not increased in each of the last two quarters. In the first quarter, revenue increased 5.2% to $396.7 million from the year-earlier quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 45 cents a share to 55 cents over the last ninety days. The average estimate for the fiscal year is $1.83 per share, a rise from $1.53 ninety days ago.

Competitors to Watch: LTX-Credence Corporation, Verigy Ltd., Advantest Corp., Aehr Test Systems, Nanometrics Incorporated, Agilent Technologies Inc., Aetrium, Inc., Cohu, Inc., Rudolph Technologies, Inc., and inTEST Corporation.

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

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