Semiconductor testing company Teradyne (NASDAQ: TER) will be reporting results this Tuesday after the bell. Here’s what to look for.
Teradyne beat analysts’ revenue expectations last quarter, reporting revenues of $1.33 billion, up 104% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ operating income estimates.
Is Teradyne a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Teradyne’s revenue to grow 64.9% year on year, improving from the 4.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Teradyne has a history of exceeding Wall Street’s expectations.
Looking at Teradyne’s peers in the semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Lam Research delivered year-on-year revenue growth of 54.4%, meeting analysts’ expectations, and Penguin Solutions reported revenues up 67.7%, topping estimates by 8.8%. Lam Research traded down 12% following the results while Penguin Solutions was up 13.1%.
Read our full analysis of Lam Research’s results here and Penguin Solutions’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the semiconductors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 13.7% on average over the last month. Teradyne is down 23.4% during the same time and is heading into earnings with an average analyst price target of $445.47 (compared to the current share price of $307.50).
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