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Teradyne (TER) to Report Q1 Earnings: What's in the Cards?

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·4 min read
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Teradyne TER is scheduled to report first-quarter 2022 results on Apr 26.

For the first quarter, the company expects revenues between $700 million and $770 million. The Zacks Consensus Estimate for sales is pegged at $744 million, indicating a decline of 4.8% from the year-ago reported value.

Further, it anticipates non-GAAP earnings between 76 cents and 98 cents per share. The consensus mark for earnings per share is pegged at 87 cents per share, indicating a 21.6% fall from the previous-year reported figure.

It surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 8.09%.

Teradyne, Inc. Price and EPS Surprise

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

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

Key Factors to Note

Teradyne’s solid momentum across the Test and Industrial Automation businesses is likely to have benefited its first-quarter performance.

The growing adoption of Universal Robots and Mobile Industrial Robots products across various applications is expected to have supported the Industrial Automation business.

Further, the increasing demand for ultra-wideband might have remained a positive factor in driving the company’s LitePoint business.

Strength in the memory test markets might have been a tailwind for semiconductor test revenues.

TER has been witnessing strong demand in both flash and DRAM in the Memory test business. This is likely to be reflected in the to-be-reported quarter’s results.

Increasing sales in storage test, defense and aerospace are anticipated to have driven System Test group revenues in the quarter under review.

Strong momentum in the commute, industrial and automotive markets is likely to have remained a tailwind.

Yet, the company’s system-on-a-chip business is likely to have contracted during the underlined quarter as TER shifted its 3-nanometer volume production to 2023.

Further, increasing operating expenses and supply chain challenges are expected to get reflected in the upcoming quarterly results.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Teradyne this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Teradyne has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell), at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Analog Devices ADI has an Earnings ESP of +2.17% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year reported figure.

Cisco Systems CSCO has an Earnings ESP of +0.84% and a Zacks Rank #2 at present.

Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, which suggests an increase of 3.61% from the prior-year reported figure.

HP HPQ has an Earnings ESP of +0.78% and a Zacks Rank #3 at present.

HP is scheduled to release second-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for HPQ’s earnings is pegged at $1.06 per share, which suggests an increase of 13.98% from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Analog Devices, Inc. (ADI) : Free Stock Analysis Report

HP Inc. (HPQ) : Free Stock Analysis Report

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