Teradyne Inc (TER) Q3 2023 Earnings: Revenue and Earnings Above Guidance Despite Decline
Teradyne Inc (NASDAQ:TER) reported Q3 2023 revenue of $704 million, a 15% decrease from Q3 2022.
GAAP net income for Q3 2023 was $128 million or $0.78 per diluted share.
Teradyne returned $136 million to shareholders in share repurchases and dividends in Q3 2023.
Robotics demand stabilized with Q3 2023 revenue down 4% from Q3 2022, but up 20% from Q2 2023.
Teradyne Inc (NASDAQ:TER) released its Q3 2023 earnings report on October 26, 2023. The company reported revenue of $704 million, a 15% decrease from Q3 2022's revenue of $827 million. Despite the decrease in revenue, the company's earnings were above the mid-point of Q3 guidance.
Financial Performance
Teradyne's GAAP net income for Q3 2023 was $128 million or $0.78 per diluted share. On a non-GAAP basis, the company's net income was $132 million, or $0.80 per diluted share, excluding restructuring and other charges, acquired intangible asset amortization, and discrete income tax items.
Segment Performance
Of the total revenue, $498 million was in Semiconductor Test, $83 million in System Test, $37 million in Wireless Test, and $86 million in Robotics. The company noted that the demand for Robotics has stabilized, with Q3 2023 revenue down 4% from Q3 2022 but up 20% from Q2 2023.
Shareholder Returns
In Q3 2023, Teradyne returned $136 million to shareholders in the form of share repurchases and dividends.
CEO Commentary
Greater than planned Robotics shipments and sequential growth in Semiconductor Test combined to drive sales and profits to the high end of our Q3 guidance range," said Teradyne CEO Greg Smith. "As we enter Q4, test demand is focused on technology investments with limited capacity expansion purchases expected in the quarter. In Robotics, demand has stabilized and we anticipate delivering second half results in-line with our July outlook, finishing the year achieving record quarterly shipments."
Q4 2023 Guidance
Teradyne expects Q4 2023 revenue to be between $640 million and $700 million, with GAAP net income of $0.58 to $0.78 per diluted share and non-GAAP net income of $0.61 to $0.81 per diluted share.
Explore the complete 8-K earnings release (here) from Teradyne Inc for further details.
This article first appeared on GuruFocus.
