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Teradyne (TER) Q1 Earnings & Revenues Top Estimates, Rise Y/Y
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Teradyne (TER - Free Report) reported first-quarter 2021 earnings of $1.11 per share, which surpassed the Zacks Consensus Estimate by 6.7% and increased 11.1% year over year.
Revenues of $781.6 million surpassed the Zacks Consensus Estimate by 2.9% and also beat management’s guidance of $720-$780 million.
The figure increased 11% year over year driven by strong performances from the Test and Industrial Automation (“IA”) businesses.
Quarter Details
Revenues from Semiconductor Test platforms, System Test business, IA and Wireless Test business were $528 million, $133 million, $80 million and $41 million, respectively.
Test demand for automotive, industrial, memory and mobility remain strong in the reported quarter. Moreover, IA revenues increased 33% year over year.
Non-GAAP gross margin was 59.1%, expanding 150 basis points (bps) year over year.
GAAP operating expenses increased 15% year over year to $228.6 million. As percentage of revenues, GAAP operating expenses increased 100 bps year over year to 29.2%.
Strong growth in operating expenses was driven by selling and administrative (S&A) expenses, as well as engineering and development (E&D) expenses. S&A grew 16.5% year over year to $129.8 million. E&D increased 17.9% year over year to $100.4 million.
As percentage of revenues, both S&A and E&D increased 80 bps year over year.
Consequently, operating margin was at 29.6%, down 10 bps from the year-ago quarter.
Balance Sheet & Cash Flow
As of Apr 4, 2021, Teradyne’s cash and cash equivalents (including marketable securities) were $1.31 billion, lower than $1.44 billion as of Dec 31, 2020.
Net cash provided by operating activities was $38.1 million for the first quarter versus $260.4 million in the prior quarter.
Guidance
For the second quarter of 2021, Teradyne expects revenues between $1.01 billion and $1.09 billion. The Zacks Consensus Estimate for the same is pegged at $897.8 million.
Strengthening test demand, continuous recovery in automotive-related semiconductor test shipments and robust IA business are major tailwinds. Teradyne expects to generate more than 30% IA revenue growth in 2021.
Non-GAAP earnings are expected between $1.62 and $1.83 per share for second-quarter 2021. The consensus mark for the same is at $1.35 per share.
Zacks Rank & Stocks to Consider
Currently, Teradyne carries a Zacks Rank #3 (Hold).
AMETEK, CDW and Cognex are scheduled to report their quarterly earnings on May 4, 5 and 6, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Teradyne (TER) Q1 Earnings & Revenues Top Estimates, Rise Y/Y
Teradyne (TER - Free Report) reported first-quarter 2021 earnings of $1.11 per share, which surpassed the Zacks Consensus Estimate by 6.7% and increased 11.1% year over year.
Revenues of $781.6 million surpassed the Zacks Consensus Estimate by 2.9% and also beat management’s guidance of $720-$780 million.
The figure increased 11% year over year driven by strong performances from the Test and Industrial Automation (“IA”) businesses.
Quarter Details
Revenues from Semiconductor Test platforms, System Test business, IA and Wireless Test business were $528 million, $133 million, $80 million and $41 million, respectively.
Teradyne, Inc. Price, Consensus and EPS Surprise
Teradyne, Inc. price-consensus-eps-surprise-chart | Teradyne, Inc. Quote
Test demand for automotive, industrial, memory and mobility remain strong in the reported quarter. Moreover, IA revenues increased 33% year over year.
Non-GAAP gross margin was 59.1%, expanding 150 basis points (bps) year over year.
GAAP operating expenses increased 15% year over year to $228.6 million. As percentage of revenues, GAAP operating expenses increased 100 bps year over year to 29.2%.
Strong growth in operating expenses was driven by selling and administrative (S&A) expenses, as well as engineering and development (E&D) expenses. S&A grew 16.5% year over year to $129.8 million. E&D increased 17.9% year over year to $100.4 million.
As percentage of revenues, both S&A and E&D increased 80 bps year over year.
Consequently, operating margin was at 29.6%, down 10 bps from the year-ago quarter.
Balance Sheet & Cash Flow
As of Apr 4, 2021, Teradyne’s cash and cash equivalents (including marketable securities) were $1.31 billion, lower than $1.44 billion as of Dec 31, 2020.
Net cash provided by operating activities was $38.1 million for the first quarter versus $260.4 million in the prior quarter.
Guidance
For the second quarter of 2021, Teradyne expects revenues between $1.01 billion and $1.09 billion. The Zacks Consensus Estimate for the same is pegged at $897.8 million.
Strengthening test demand, continuous recovery in automotive-related semiconductor test shipments and robust IA business are major tailwinds. Teradyne expects to generate more than 30% IA revenue growth in 2021.
Non-GAAP earnings are expected between $1.62 and $1.83 per share for second-quarter 2021. The consensus mark for the same is at $1.35 per share.
Zacks Rank & Stocks to Consider
Currently, Teradyne carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector are AMETEK (AME - Free Report) , Cognex (CGNX - Free Report) and CDW Corporation (CDW - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMETEK, CDW and Cognex are scheduled to report their quarterly earnings on May 4, 5 and 6, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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