Semiconductor testing company Teradyne (NASDAQ:TER) will be reporting results this Tuesday afternoon. Here’s what to look for.
Teradyne beat analysts’ revenue expectations last quarter, reporting revenues of $1.28 billion, up 87% year on year. It was an exceptional quarter for the company, with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.
Is Teradyne a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Teradyne’s revenue to grow 86.5% year on year, a reversal from the 10.7% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Teradyne has a history of exceeding Wall Street’s expectations.
Looking at Teradyne’s peers in the semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Intel delivered year-on-year revenue growth of 25.4%, beating analysts’ expectations by 11.7%, and Micron reported revenues up 346%, topping estimates by 13.9%. Intel traded down 12.2% following the results.
Read our full analysis of Intel’s results here and Micron’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). Investors in semiconductors stocks haven’t been spared in this environment as share prices are down 15.4% on average over the last month. Teradyne is down 24.5% during the same time and is heading into earnings with an average analyst price target of $429.88 (compared to the current share price of $348.25).
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