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With a market cap of $20.4 billion, North Reading, Massachusetts-based Teradyne, Inc. (TER) is a leading provider of automated test equipment and robotics solutions. The company primarily serves the semiconductor, defense, storage, and wireless test markets with cutting-edge testing platforms and robotics products worldwide. The company is expected to announce its Q3 earnings on Wednesday, Oct. 23.
Ahead of the event, analysts expect Teradyne to report a profit of $0.78 per share, down 2.5% from $0.80 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS projections in the past four quarters. In the last reported quarter, TER exceeded the consensus estimates by 13.2%.
In fiscal 2024, analysts expect Teradyne to report an EPS of $3.02, up 3.1% from $2.93 in fiscal 2023. Looking forward to fiscal 2025, its EPS is expected to grow 46.4% year-over-year to $4.42.
TER stock is up 30.2% over the past 52 weeks, slightly underperforming the S&P 500 Index’s ($SPX) 34.9% gains and the Technology Select Sector SPDR Fund’s (XLK) 36.6% returns over the same time frame.
Despite reporting better-than-expected Q2 adjusted EPS of $0.86 and revenue of $729.9 million on Jul. 24, shares of Teradyne dipped 13.4% the following day due to a weak Q3 outlook. The company projected lower-than-expected revenue and earnings for Q3, driven by sluggish demand in the semiconductor testing market, particularly from the automotive sector. Additionally, concerns over excess inventory from customers, lingering from pandemic stockpiling, contributed to negative investor sentiment.
The consensus opinion on Teradyne stock is cautiously optimistic, with an overall “Moderate Buy” rating. Among 16 analysts covering the stock, 10 recommend “Strong Buy,” five suggest “Hold,” and one suggests “Moderate Sell.” This configuration is slightly less bullish than three months ago, with 11 analysts suggesting a "Strong Buy." Currently, TER is trading below the average analyst price target of $146.84.
On the date of publication, Sohini Mondal 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.
