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Why Is Teradyne (TER) Up 5.5% Since Last Earnings Report?
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A month has gone by since the last earnings report for Teradyne (TER - Free Report) . Shares have added about 5.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Teradyne due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Teradyne Q2 Earnings Top Estimates, Revenues Up Y/Y
Teradyne 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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -11.12% due to these changes.
VGM Scores
At this time, Teradyne has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Teradyne has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Teradyne (TER) Up 5.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Teradyne (TER - Free Report) . Shares have added about 5.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Teradyne due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Teradyne Q2 Earnings Top Estimates, Revenues Up Y/Y
Teradyne 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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -11.12% due to these changes.
VGM Scores
At this time, Teradyne has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Teradyne has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.