Semiconductor testing company Teradyne (NASDAQ: TER) will be reporting results this Tuesday after the bell. Here’s what investors should know.
Teradyne met analysts’ revenue expectations last quarter, reporting revenues of $651.8 million, down 10.7% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations significantly.
Is Teradyne a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Teradyne’s revenue to grow 1% year on year to $744.9 million, slowing from the 4.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.79 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Teradyne has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2% on average.
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 27.7%, beating analysts’ expectations by 1.6%, and Micron reported revenues up 46%, topping estimates by 1.8%. Lam Research traded up 4.3% following the results while Micron was down 2.9%.
Read our full analysis of Lam Research’s results here and Micron’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 7.6% on average over the last month. Teradyne is up 8.1% during the same time and is heading into earnings with an average analyst price target of $139.38 (compared to the current share price of $145.25).
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