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Teradyne (TER) Q2 Earnings Top Estimates, Revenues Up Y/Y
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Teradyne (TER - Free Report) reported second-quarter 2024 earnings of 86 cents per share, surpassing the Zacks Consensus Estimate by 13.16% and increasing 8.9% year over year.
Revenues of $730 million beat the Zacks Consensus Estimate by 3.3% and increased 6.7% year over year.
Quarter Details
Revenues from Semiconductor Test platforms, System Test business, Wireless Test business and Robotics were $543 million (74.4% of total revenues), $61 million (8.4%), $36 million (4.9%) and $90 million (12.3%), respectively.
Strong momentum in the memory test end-market and demand recovery in SoC drove top-line growth.
Gross margin was 58.3%, which contracted 40 basis points (bps) year over year.
In the reported quarter, selling and administrative expenses increased 6% year over year to $154.5 million. As a percentage of revenues, selling and marketing expenses were 21.2%, down 10 bps year over year.
Engineering and development expenses increased 5.8% year over year to $111.8 million. As a percentage of revenues, engineering and development expenses contracted 10 bps on a year-over-year basis to 15.3%.
Balance Sheet & Cash Flow
As of Jun 30, 2024, Teradyne’s cash and cash equivalents (including marketable securities) were $460.5 million, lower than $748.7 million as of Mar 31, 2024.
Net cash provided by operating activities was $2.16 billion in the second quarter, up from $7.279 million in the prior quarter.
Guidance
For third-quarter 2024, Teradyne expects revenues between $680 million and $740 million.
Non-GAAP earnings are expected between 66 cents and 86 cents per share.
Zacks Rank & Other Stocks to Consider
Teradyne currently carries a Zacks Rank #2 (Buy).
TER’s shares have increased 32.3% compared with the Zacks Computer and Technology sector’s rise of 23.9% year to date.
Arista Networks (ANET - Free Report) , Apple (AAPL - Free Report) and Cognizant Technology Solutions (CTSH - Free Report) are some other top-ranked stocks that investors can consider in the broader sector. Arista Network sports a Zacks Rank #1 (Strong Buy) at present, while Apple and Cognizant Technology Solutions carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 38.4% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.
Apple’s shares have increased 13.5% year to date. AAPL is set to report its third-quarter fiscal 2024 results on Aug 1.
Cognizant Technology Solutions’ shares have dropped 3.7% year to date. CTSH is set to report second-quarter 2024 results on Jul 31.
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Teradyne (TER) Q2 Earnings Top Estimates, Revenues Up Y/Y
Teradyne (TER - Free Report) reported second-quarter 2024 earnings of 86 cents per share, surpassing the Zacks Consensus Estimate by 13.16% and increasing 8.9% year over year.
Revenues of $730 million beat the Zacks Consensus Estimate by 3.3% and increased 6.7% year over year.
Quarter Details
Revenues from Semiconductor Test platforms, System Test business, Wireless Test business and Robotics were $543 million (74.4% of total revenues), $61 million (8.4%), $36 million (4.9%) and $90 million (12.3%), respectively.
Strong momentum in the memory test end-market and demand recovery in SoC drove top-line growth.
Teradyne, Inc. Price, Consensus and EPS Surprise
Teradyne, Inc. price-consensus-eps-surprise-chart | Teradyne, Inc. Quote
Gross margin was 58.3%, which contracted 40 basis points (bps) year over year.
In the reported quarter, selling and administrative expenses increased 6% year over year to $154.5 million. As a percentage of revenues, selling and marketing expenses were 21.2%, down 10 bps year over year.
Engineering and development expenses increased 5.8% year over year to $111.8 million. As a percentage of revenues, engineering and development expenses contracted 10 bps on a year-over-year basis to 15.3%.
Balance Sheet & Cash Flow
As of Jun 30, 2024, Teradyne’s cash and cash equivalents (including marketable securities) were $460.5 million, lower than $748.7 million as of Mar 31, 2024.
Net cash provided by operating activities was $2.16 billion in the second quarter, up from $7.279 million in the prior quarter.
Guidance
For third-quarter 2024, Teradyne expects revenues between $680 million and $740 million.
Non-GAAP earnings are expected between 66 cents and 86 cents per share.
Zacks Rank & Other Stocks to Consider
Teradyne currently carries a Zacks Rank #2 (Buy).
TER’s shares have increased 32.3% compared with the Zacks Computer and Technology sector’s rise of 23.9% year to date.
Arista Networks (ANET - Free Report) , Apple (AAPL - Free Report) and Cognizant Technology Solutions (CTSH - Free Report) are some other top-ranked stocks that investors can consider in the broader sector. Arista Network sports a Zacks Rank #1 (Strong Buy) at present, while Apple and Cognizant Technology Solutions carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 38.4% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.
Apple’s shares have increased 13.5% year to date. AAPL is set to report its third-quarter fiscal 2024 results on Aug 1.
Cognizant Technology Solutions’ shares have dropped 3.7% year to date. CTSH is set to report second-quarter 2024 results on Jul 31.