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Massachusetts-based Teradyne, Inc. (TER), with a market cap of $23.6 billion, is a leading provider of automated test equipment primarily focused on the semiconductor test market. Its products include the FLEX, J750, Magnum, and ETS platforms for testing semiconductor devices, alongside global service offerings for system deployment and operation support. The company is expected to announce its fiscal Q2 earnings results on Wednesday, Jul. 24.
Ahead of the event, analysts expect TER to report a profit of $0.76 per share, down 3.8% from $0.79 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in all of the past four quarters. It reported an EPS of $0.51 in the latest quarter, 54.6% above the consensus estimate, thanks to the strong momentum in the memory test end-market.
Wall Street expects Teradyne's EPS to surge 3.8% from $2.93 in fiscal 2023 to $3.04 in fiscal 2024. Furthermore, the company’s EPS is projected to grow 46.1% in fiscal 2025 to $4.44.
TER stock has surged 45.2% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 26.6% gains and the Technology Select Sector SPDR Fund’s (XLK) 36.8% returns over the same time frame.
Despite ongoing challenges in mobility, Teradyne’s solid momentum can be attributed to stronger-than-expected demand in memory and networking driven by AI applications, along with in-line Robotics shipments.
Teradyne delivered a strong performance in Q1, reporting revenues of $599.8 million, which exceeded analysts' expectations. The company also surpassed analysts' bottom-line estimates and provided positive revenue guidance for the next quarter, expecting revenue in the range of $665 million to $725 million, with projected non-GAAP net income of $0.64 to $0.84 per share. Following the Q1 earnings report, the stock initially saw a marginal increase on Apr. 24, followed by an 8.2% rise in the subsequent trading session.
Analysts' consensus view on Teradyne stock is cautiously optimistic overall, with a "Moderate Buy" rating. Among 16 analysts covering the stock, 11 recommend a "Strong Buy," four suggest a “Hold,” and the remaining analyst advises a "Moderate Sell."
The stock currently trades above its average price target of $129.56. The Street-high target of $170 reflects a potential upswing of 12.4% from current market prices.
On the date of publication, Kritika Sarmah 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.
