Teradyne (TER) Q4 Earnings Top Estimates, Revenues Fall Y/Y
Teradyne TER reported fourth-quarter 2023 earnings of 79 cents per share, which surpassed the Zacks Consensus Estimate by 9.72% but declined 14.1% year over year.
Revenues of $671 million lagged the Zacks Consensus Estimate by 0.85% and declined 8.3% year over year.
Quarter Details
Revenues from Semiconductor Test platforms, System Test business, Wireless Test business and Robotics were $431 million (64.2% of total revenues), $86 million (12.8%), $25 million (3.7%) and $129 million (19.2%), respectively.
Robotics revenues increased 50% sequentially and 17% year over year.
Teradyne, Inc. Price, Consensus and EPS Surprise
Teradyne, Inc. price-consensus-eps-surprise-chart | Teradyne, Inc. Quote
Gross margin was 56.6%, which contracted 90 basis points (bps) year over year.
In the reported quarter, selling and administrative expenses decreased 0.3% year over year to $142.3 million. As a percentage of revenues, selling and marketing expenses were 21.2%, up 170 bps year over year.
Engineering and development expenses decreased 6.1% year over year to $102.2 million. As a percentage of revenues, engineering and development expenses increased 40 bps on a year-over-year basis to 15.2%.
Balance Sheet & Cash Flow
As of Dec 31, 2023, Teradyne’s cash and cash equivalents (including marketable securities) were $819.7 million, lower than $716.5 million as of Oct 1, 2023.
Net cash provided by operating activities was $248.8 million for the fourth quarter, up from $174.3 million in the prior quarter.
Guidance
For the first quarter of 2024, Teradyne expects revenues between $540 million and $590 million. Non-GAAP earnings are expected between 22 cents and 38 cents per share.
Zacks Rank & Stocks to Consider
Currently, Teradyne carries a Zacks Rank #4 (Sell).
TER’s shares have declined 7.4% compared with the Zacks Computer and Technology sector’s rise of 13.5% year to date.
Shopify SHOP, Pinterest PINS and AvidXchange AVDX are some better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify shares have gained 21.8% in the past six-month period. SHOP is set to report its fourth-quarter 2023 results on Feb 13.
Pinterest shares have gained 32.5% in the past six-month period. PINS is set to report its fourth-quarter 2023 results on Feb 8.
AvidXchange shares have declined 9.3% in the past six-month period. AVDX is set to report its fourth-quarter 2023 results on Feb 28.
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