Semiconductor testing company Teradyne (NASDAQ: TER) will be reporting earnings this Tuesday after market hours. Here’s what to expect.
Teradyne beat analysts’ revenue expectations last quarter, reporting revenues of $1.08 billion, up 43.9% year on year. It was an incredible quarter for the company, with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.
Is Teradyne a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Teradyne’s revenue to grow 77.1% year on year, improving from the 14.3% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Teradyne has a history of exceeding Wall Street’s expectations.
Looking at Teradyne’s peers in the semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Lam Research delivered year-on-year revenue growth of 23.8%, beating analysts’ expectations by 1.7%, and Texas Instruments reported revenues up 18.6%, topping estimates by 6.6%. Lam Research traded down 2.5% following the results while Texas Instruments was up 19.6%.
Read our full analysis of Lam Research’s results here and Texas Instruments’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 50.4% on average over the last month. Teradyne is up 51.5% during the same time and is heading into earnings with an average analyst price target of $344.59 (compared to the current share price of $418.23).
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