U.S. Markets close in 3 hrs 59 mins
  • S&P 500

    4,405.85
    +51.66 (+1.19%)
     
  • Dow 30

    34,366.55
    +446.71 (+1.32%)
     
  • Nasdaq

    14,903.47
    +157.07 (+1.07%)
     
  • Russell 2000

    2,223.79
    +37.60 (+1.72%)
     
  • Crude Oil

    70.51
    -0.05 (-0.07%)
     
  • Gold

    1,778.30
    +0.10 (+0.01%)
     
  • Silver

    22.80
    +0.23 (+1.01%)
     
  • EUR/USD

    1.1743
    +0.0012 (+0.1057%)
     
  • 10-Yr Bond

    1.3140
    -0.0100 (-0.76%)
     
  • Vix

    21.22
    -3.14 (-12.89%)
     
  • GBP/USD

    1.3668
    +0.0004 (+0.0273%)
     
  • USD/JPY

    109.6000
    +0.3800 (+0.3479%)
     
  • BTC-USD

    44,590.88
    -3,435.44 (-7.15%)
     
  • CMC Crypto 200

    1,080.00
    +39.52 (+3.80%)
     
  • FTSE 100

    7,083.37
    +102.39 (+1.47%)
     
  • Nikkei 225

    29,639.40
    -200.31 (-0.67%)
     

Teradyne (TER) Q2 Earnings & Revenues Top Estimates, Up Y/Y

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Teradyne TER reported second-quarter 2021 earnings of $1.91 per share, which surpassed the Zacks Consensus Estimate by 9.8% and increased 44% year over year.

Revenues of $1.09 billion also surpassed the Zacks Consensus Estimate of $1.05 billion. Further, the figure increased 29.76% year over year. Strong performance of Test and Industrial Automation (“IA”) businesses drove top-line growth for the reported quarter.

Teradyne, Inc. Price, Consensus and EPS Surprise

Teradyne, Inc. Price, Consensus and EPS Surprise
Teradyne, Inc. Price, Consensus and EPS Surprise

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

Quarter Details

Revenues from Semiconductor Test platforms, System Test business, IA and Wireless Test business were $834 million, $105 million, $92 million and $55 million, respectively.

Test demand across all end markets served remained high for the reported quarter. Moreover, system-on-a-chip test shipments grew approximately 30% year over year.

Further, the IA business witnessed strong recovery as IA revenues increased 57% year over year. Also, its Universal Robots delivered growth in North America, Europe and China driven by global economic recovery and expanding range of automation solutions.

Non-GAAP gross margin was 59.6%, expanding 340 basis points (bps) year over year.

GAAP operating expenses increased 1.81% year over year to $258.1 million. As a percentage of revenues, GAAP operating expenses decreased 645 bps year over year to 23.77%.

Selling and administrative (S&A) expenses grew 23.7% year over year to $140.1 million. Engineering and development (E&D) increased 16.9% year over year to $110 million. Nonetheless, S&A and E&D expenses contracted 60 bps and 109 bps as a percentage of revenues, respectively.

Acquired intangible assets amortization (AIAA) and restructuring and other (R&O) expenses declined 39.6% and 93.3% year over year to $5.4 million and $2.5 million, respectively. As a percentage of revenues, AIAA and R&O expenses contracted 57 bps and 421 bps year over year, respectively.

Consequently, non-GAAP operating margin was at 36.5%, which expanded 500 bps from the year-ago quarter.

Balance Sheet & Cash Flow

As of Jul 4, 2021, Teradyne’s cash and cash equivalents (including marketable securities) were $1.24 billion, lower than $1.31 billion on Apr 4, 2021.

Net cash provided by operating activities was $206.3 million for the second quarter versus $38.1 million in the prior quarter.

Guidance

For the third quarter of 2021, Teradyne expects revenues between $880 million and $960 million. The Zacks Consensus Estimate for the same is pegged at $931.1 million.

Continuous demand from both Test and Industrial Automation end markets are major tailwinds.

Non-GAAP earnings are expected between $1.29 and $1.55 per share for third-quarter 2021. The consensus mark for the same is $1.38 per share.

Zacks Rank & Stocks to Consider

Currently, Teradyne carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector include Semtech Corporation SMTC, Agilent Technologies A and Microchip Technology Incorporated MCHP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rates for Semtech, Agilent and Microchip are currently projected at 12.5%, 13% and 15.3%, respectively.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Agilent Technologies, Inc. (A) : Free Stock Analysis Report

Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report

Semtech Corporation (SMTC) : Free Stock Analysis Report

Teradyne, Inc. (TER) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research