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Teradyne (TER) to Report Q3 Earnings: What's in the Offing?

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Teradyne (TER - Free Report) is scheduled to report its third-quarter 2023 results on Oct 25.

For the third quarter, TER expects revenues between $650 million and $710 million. The Zacks Consensus Estimate for sales is pegged at $657.1 million, indicating a decline of 21.8% from the year-ago quarter’s reported value.

Teradyne anticipates non-GAAP earnings between 61 cents and 81 cents. The consensus mark for earnings is pegged at 66 cents, indicating a 45.5% fall from the year-ago quarter’s reported figure.

TER’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 21.39%.
 

Teradyne, Inc. Price and EPS Surprise

 

Teradyne, Inc. Price and EPS Surprise

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

 

Let’s see how things have shaped up for the upcoming announcement:

Factors to Consider

Teradyne is expected to have benefited from improving demand for semiconductor test equipment in the automotive and industrial end markets.

In memory tests, the growth of DDR5 and HBM devices for data center applications is driving retooling, which has been benefiting Terdayne. The trend is expected to have continued in the to-be-reported quarter.

However, the overall weak demand environment and rising inflationary pressure are expected to have been headwinds for the company. Also, sluggish demand for mobility and computer-related SOC tests is likely to have hurt the performance of Teradyne’s Semiconductor Test segment.

The Zacks Consensus Estimate for Semiconductor Test Group revenues is pegged at $484.8 million, indicating a decline of 15.8% from the year-ago reported figure.

Moreover, sluggish industrial growth is expected to have impacted Teradyne’s Robotics segment. However, the contribution of UR20 revenues in the to-be-reported quarter is likely to have aided top-line growth.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Teradyne has an Earnings ESP of -1.90% and carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

GoDaddy (GDDY - Free Report) has an Earnings ESP of +14.09% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

GoDaddy shares have lost 0.4% year to date. GDDY is set to report its third-quarter 2023 results on Nov 2.

Pinterest (PINS - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #1.

Pinterest shares have gained 6.9% year to date. PINS is set to report its third-quarter 2023 results on Oct 30.

Meta Platforms (META - Free Report) has an Earnings ESP of +3.98% and a Zacks Rank of 3 at present.

Meta shares have gained 156.5% year to date. META is set to report its third-quarter 2023 results on Oct 25.


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