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Teradyne (TER) Q4 Earnings & Revenues Top Estimates, Up Y/Y

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Teradyne (TER - Free Report) reported fourth-quarter 2021 earnings of $1.37 per share, which surpassed the Zacks Consensus Estimate by 6.2% and increased 24.6% year over year.

Revenues of $885.05 million also surpassed the Zacks Consensus Estimate of $867.39 million. Further, the figure increased 16.6% year over year. Higher demand for both Test and Industrial Automation (“IA”) products drove top-line growth for the reported quarter.

Quarter Details

Revenues from Semiconductor Test platforms, System Test business, IA, and Wireless Test business were $592 million, $127 million, $113 million, and $52 million, respectively.

Test revenues were driven by strength in Semiconductor Test and Wireless Test. Also, IA revenues increased because Universal Robots globally delivered high growth.

Teradyne, Inc. Price, Consensus and EPS Surprise

Teradyne, Inc. Price, Consensus and EPS Surprise

Teradyne, Inc. price-consensus-eps-surprise-chart | Teradyne, Inc. Quote

Operating Results

Non-GAAP gross margin was 59.5%, expanding 20 basis points (bps) year over year.

GAAP operating expenses increased 21.7% year over year to $262.6 million. As a percentage of revenues, GAAP operating expenses increased 125 bps year over year to 29.7%.

Consequently, non-GAAP operating margin was 31%, which expanded 130 bps from the year-ago quarter.

Balance Sheet & Cash Flow

As of Dec 31, 2021, Teradyne’s cash and cash equivalents (including marketable securities) were $1.37 billion, higher than $1.31 billion on Oct 3, 2021.

Net cash provided by operating activities was $331.3 million for the fourth quarter versus $522.7 million in the prior quarter.

Guidance

For the first quarter of 2022, Teradyne expects revenues between $700 million and $770 million. The Zacks Consensus Estimate for the same is pegged at $835.42 million.

Non-GAAP earnings are expected between $0.76 and $0.98 per share for first-quarter 2022. The consensus mark for the same is $1.22 per share.

Zacks Rank & Other Stocks to Consider

Currently, Teradyne carries a Zacks Rank #2 (Buy).

Other similar-ranked stocks in the broader technology sector include AMETEK (AME - Free Report) , Advanced Micro Devices (AMD - Free Report) and Mimecast Limited , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMETEK is scheduled to release fourth-quarter 2021 results on Feb 3.It has gained 16.2% over a year. The long-term earnings growth rate for STM is currently projected at 10.4%.

Advanced Micro Devices is slated to report fourth-quarter 2021 results on Feb 1. It has gained 26.5% over a year. The long-term earnings growth rate for AMD is currently projected at 46.2%.

Mimecast is slated to report third-quarter fiscal 2022 results on Feb 3. It has gained 83.4% over a year. The long-term earnings growth rate for MIME is currently projected at 35%.


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