Teradyne (TER) To Report Earnings Tomorrow: Here Is What To Expect

Radek Strnad /
2023/04/25 3:27 am EDT

Semiconductor testing company Teradyne (NASDAQ:TER) will be reporting earnings tomorrow after the bell. Here's what you need to know.

Last quarter Teradyne reported revenues of $731.8 million, down 17.3% year on year, beating analyst revenue expectations by 2.81%. It was a weak quarter for the company, with declining revenue and underwhelming revenue guidance for the next quarter.

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 20.2% year on year to $603 million, a further deceleration on the 3.36% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.44 per share.

Teradyne Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing three downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.25%.

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 reported revenue decline of 4.45% year on year, missing analyst estimates by 1.34%. SMART was down 3.44%. Read our full analysis of SMART's results here.

Technology stocks have been hit hard on fears of higher interest rates and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 4.5% over the last month. Teradyne is down 7.37% during the same time, and is heading into the earnings with analyst price target of $113.6, compared to share price of $97.59.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.