Earnings To Watch: Teradyne (TER) Reports Q1 Results Tomorrow

Adam Hejl /
2024/04/23 3:01 am EDT

Semiconductor testing company Teradyne (NASDAQ:TER) will be reporting earnings tomorrow after market close. Here's what to expect.

Last quarter Teradyne reported revenues of $670.6 million, down 8.4% year on year, missing analyst expectations by 0.9%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.

Is Teradyne buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Teradyne's revenue to decline 7.6% year on year to $570.4 million, improvement on the 18.2% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share.

Teradyne Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.2%.

Looking at Teradyne's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. SMART's revenues decreased 26.7% year on year, missing analyst estimates by 0.1% and Micron Technology reported revenues up 57.7% year on year, exceeding estimates by 8.8%. SMART traded down 24.1% on the results, and Micron Technology was up 14.1%.

Read our full analysis of SMART's results here and Micron Technology's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 7.8% over the last month. Teradyne is down 10.3% during the same time, and is heading into the earnings with analyst price target of $115.6, compared to share price of $97.6.

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