Semiconductor testing company Teradyne (NASDAQ:TER) will be announcing earnings results this Monday after market hours. Here’s what to expect.
Teradyne beat analysts’ revenue expectations by 3.3% last quarter, reporting revenues of $769.2 million, up 4.3% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates and revenue guidance for next quarter exceeding analysts’ expectations.
Is Teradyne a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Teradyne’s revenue to grow 29.6% year on year to $975.6 million, improving from the 12.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.36 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Teradyne has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.1% on average.
Looking at Teradyne’s peers in the semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Lam Research delivered year-on-year revenue growth of 22.1%, beating analysts’ expectations by 1.8%, and KLA Corporation reported revenues up 7.2%, topping estimates by 1.3%. Lam Research traded up 3.4% following the results while KLA Corporation was down 15.2%.
Read our full analysis of Lam Research’s results here and KLA Corporation’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 12.1% on average over the last month. Teradyne is up 16.8% during the same time and is heading into earnings with an average analyst price target of $220 (compared to the current share price of $241.13).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.