- Teradyne reported a 3rd quarter adjusted EPS of 90 cents, beating last year’s 80 cents and exceeding estimates of 79 cents.
- The company’s net revenue for the quarter was $737.3 million, marking a 4.8% increase from the previous year and surpassing the estimate of $715.9 million.
- Engineering and development expenses rose by 13% year-over-year, totaling $117.5 million, slightly above the estimated $116.3 million.
- The Semiconductor Test segment generated revenues of $543 million, outperforming the estimate of $509.4 million.
- System Test revenues came in at $73 million, surpassing the expected $69.8 million.
- Wireless Test revenues were slightly below estimates, with $33 million compared to an expected $33.4 million.
- Adjusted net income for the quarter stood at $147.6 million, significantly higher than the estimated $126.9 million.
- In terms of stock recommendations, there are 11 buy ratings, 7 hold ratings, and 1 sell rating.
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Teradyne Inc on Smartkarma
Analysts at Baptista Research on Smartkarma are bullish on Teradyne Inc, a leading provider of automated test equipment. In their research report titled “Teradyne Inc.: Expansion into High-Payload Robotics and Channel Growth Is A Critical Growth Lever! – Major Drivers,” the analysts highlighted the company’s mixed financial results in the second quarter of 2024. Despite grappling with segment-specific dynamics and macroeconomic factors, Teradyne saw robust performance in its System on Chip (SOC) and Memory segments, driven by increased demand from cloud AI applications. The company also noted strong deliveries in the Compute sector, attributed to the network requirements of AI data centers.
In another report by Baptista Research titled “Teradyne Inc.: How Will The Memory Market Volatility Impact Its Business? – Major Drivers,” analysts discussed Teradyne’s first quarter 2024 financial results that exceeded revenue, gross margin, and earnings guidance ranges. The outperformance was mainly driven by the Memory and System on a Chip (SOC) segments, propelled by AI applications. Despite volatility in the mobile sector, Teradyne capitalized on AI trends in networking and Edge AI applications like Advanced Driver Assistance Systems (ADAS). The company’s Robotics business also met expectations for a third consecutive quarter, showcasing its resilience and strategic planning.
A look at Teradyne Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Teradyne Inc, a company specializing in semiconductor test products and services globally, displays a promising long-term outlook based on its Smartkarma Smart Scores. With a solid Resilience score of 4, Teradyne Inc demonstrates a high level of stability and ability to withstand market fluctuations, making it a reliable investment option. Additionally, the company’s Growth score of 3 suggests potential for expansion and development in the future, indicating opportunities for increased profitability and market presence.
Although Teradyne Inc‘s Value and Dividend scores are moderate at 2, its Momentum score of 3 hints at positive market sentiment and upward trend potential. Overall, the combination of these scores positions Teradyne Inc well for sustained growth and value creation in the semiconductor industry, making it an attractive prospect for investors seeking long-term investment options.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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