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Teradyne (TER) Q3 Earnings & Revenues Top Estimates, Fall Y/Y

Teradyne TER reported third-quarter 2023 earnings of 80 cents per share, surpassing the Zacks Consensus Estimate by 11.11% but declining 30.4% year over year.

Revenues of $704 million surpassed the Zacks Consensus Estimate by 2.83% and fell 14.9% year over year.

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, Wireless Test business and Robotics were $498 million (70.7% of total revenues), $83 million (11.8%), $37 million (5.3%) and $86 million (12.2%), respectively.

Teradyne witnessed stable demand in Robotics. In the reported quarter, revenues dropped 4% year over year and increased 20% sequentially.

Gross margin was 56.6%, which contracted 212 basis points (bps) year over year.

In the reported quarter, selling and administrative expenses increased 2% year over year to $138.3 million. As a percentage of revenues, selling and marketing expenses were 19.6% compared with 16.4% reported in the year-ago quarter.

Engineering and Development, as a percentage of revenues, increased 130 basis points (bps) on a year-over-year basis to 14.8%.

Balance Sheet & Cash Flow

As of Oct 1, 2023, Teradyne’s cash, and cash equivalents (including marketable securities) were $716.5 million, lower than $708.4 million as of Jul 2, 2023.

Net cash provided by operating activities was $174.3 million for the third quarter, up from $142.8 million in the prior quarter.

The company returned $136 million to shareholders in the form of share repurchases and dividends in the reported quarter.

Guidance

For the fourth quarter of 2023, Teradyne expects revenues between $640 million and $700 million. The Zacks Consensus Estimate for the fourth quarter of 2023 is pegged at 692.14 million, indicating a year-over-year decline of 5.42%.

Non-GAAP earnings are expected between 58 cents and 78 cents per share for fourth-quarter 2023. The Zacks Consensus Estimate for fourth-quarter earnings has declined by a penny to $0.78 per share over the past 30 days, indicating a decline of 15.22% year over year.

Zacks Rank & Stocks to Consider

Currently, Teradyne carries a Zacks Rank #4 (Sell).

TER’s shares have returned 0.6% compared with the Zacks Computer and Technology sector’s rise of 30% year to date.

Here are some better-ranked stocks worth considering in the broader sector.

GoDaddy GDDY, Itron ITRI and Pinterest PINS are some better-ranked stocks that investors can consider in the broader sector.

All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

GoDaddy shares have declined 3.2% year to date. GoDaddy is scheduled to release third-quarter 2023 results on Nov 2.

Itron shares have returned 14.3% year to date. ITRI is set to report its third-quarter 2023 results on Nov 2.

Pinterest shares have declined 1% year to date. PINS is set to report its third-quarter 2023 results on Oct 30.

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Pinterest, Inc. (PINS) : Free Stock Analysis Report

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