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Teradyne (TER) to Report Q2 Earnings: What's in the Cards?

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Teradyne TER is scheduled to report second-quarter 2022 results on Jul 26.

For the second quarter, TER expects revenues between $780 million and $870 million. The Zacks Consensus Estimate for sales is pegged at $822.6 million, indicating a decline of 24.2% from the year-ago quarter’s reported value.

Teradyneanticipates non-GAAP earnings between $1.00 and $1.29 per share. The consensus mark for earnings is pegged at $1.14 per share, indicating a 40.3% fall from the previous-year quarter’s reported figure. Also, the consensus mark has been unchanged for the past 30 days.

TER’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 9.57%.

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

Solid momentum in Industrial Automation businesses is likely to have benefited Teradyne’s second-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.

Strengthening demand for Semi Test and wireless across automotive, memory, WiFi 6c and WiFi 7 is expected to have aided the quarterly performance.

Increasing demand for ultra-wideband might have remained a positive factor in driving Teradyne’s LitePoint business.

Growth in the system-on-a-chip market as a result of increasing demand for new technologies is likely to have aided the quarterly performance.

TER has been witnessing strong demand for flash in the Memory test business. This is likely to have driven semiconductor test revenues in the to-be-reported quarter.

Continuous investments in wafer fab equipment, robust 3-nanometer technology, growing opportunities for human-scale automation projects and strong customer demand for all parts of the business are anticipated to have remained tailwinds.

However, the coronavirus pandemic-triggered uncertainties are expected to have remained a headwind. The pandemic-induced lockdowns in China might have remained a concern in the to-be-reported quarter.

The impacts of the ongoing Ukraine-Russia war, increasing operating expenses and supply-chain challenges are also 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 -0.53% and a Zacks Rank #4 (Sell) at present.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Aspen Technology AZPN has an Earnings ESP of +1.40% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aspen Technology is set to report fourth-quarter fiscal 2022 results on Aug 8. The Zacks Consensus Estimate for ASPN’s earnings is pegged at $2.15 per share, which suggests an increase of 40.5% from the prior-year fiscal period’s reported figure.

Keysight Technologies KEYS has an Earnings ESP of +1.23% and a Zacks Rank of 2 at present.

Keysight Technologies is scheduled to release third-quarter fiscal 2022 results on Aug 17. The Zacks Consensus Estimate for KEYS’ earnings is pegged at $1.79 per share, suggesting an increase of 16.2% from the prior-year quarter’s reported figure.

Advanced Micro Devices AMD has an Earnings ESP of +2.14% and a Zacks Rank of 3 at present.

Advanced Micro Devices is scheduled to release second-quarter 2022 results on Aug 2. The Zacks Consensus Estimate for AMD’s earnings is pegged at $1.03 per share, suggesting an increase of 63.5% from the prior-year quarter’s reported figure.

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


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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
 
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