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Teradyne (TER) Q1 Earnings & Revenues Top Estimates, Down Y/Y

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·3-min read
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Teradyne TER reported first-quarter 2022 earnings of 98 cents per share, which surpassed the Zacks Consensus Estimate by 12.6%. Yet, earnings decreased 11.7% year over year and 28.5% sequentially.

Revenues of $755.4 million also surpassed the Zacks Consensus Estimate of $742 million. Yet, the figure declined 3% and 14.7% on a year-over-year and sequential basis, respectively.

The year-over-year decline was a result of weak demand for Test products. Nevertheless, strength of Industrial Automation (“IA”) products aided its performance for the reported quarter.

Teradyne, Inc. Price, Consensus and EPS Surprise

Teradyne, Inc. Price, Consensus and EPS Surprise
Teradyne, Inc. Price, Consensus and EPS Surprise

Teradyne, Inc. price-consensus-eps-surprise-chart | Teradyne, Inc. Quote

Quarterly Details

Revenues from Semiconductor Test platforms, System Test business, IA, and Wireless Test business were $482 million, $119 million, $103 million, and $52 million, respectively.

Test revenues were driven by strength in Semiconductor Test and Wireless Test. Also, IA revenues increased on account of an improvement in the performance of Universal Robots globally.

Operating Results

Non-GAAP gross margin was 60.2%, expanding 110 basis points (bps) year over year.

Operating expenses increased 17.7% year over year to $269.1 million. As a percentage of revenues, operating expenses increased 637 bps year over year to 35.6%.

Consequently, non-GAAP operating margin was 27.4%, which contracted 220 bps from the year-ago quarter.

Balance Sheet & Cash Flow

As of Apr 3, 2022, Teradyne’s cash and cash equivalents (including marketable securities) were $1.08 billion, lower than $1.37 billion on Dec 31, 2021.

Net cash provided by operating activities was $7.46 million for the first quarter versus $331.3 million in the prior quarter.

Guidance

For the second quarter of 2022, Teradyne expects revenues between $780 million and $870 million. The Zacks Consensus Estimate for the same is pegged at $811.9 million.

Non-GAAP earnings are expected between $1.00 and $1.29 per share for second-quarter 2022. The consensus mark for the same is pegged at $1.06 per share.

Zacks Rank & Stocks to Consider

Currently, Teradyne carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector include Jack Henry & Associates JKHY, Broadcom AVGO, and Jabil JBL. While Jabil sports a Zacks Rank #1 (Strong Buy), Broadcom and Jack Henry & Associates carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Jack Henry & Associates is scheduled to release third-quarter fiscal 2022 results on May 3.The Zacks Consensus Estimate for JKHY’s earnings is pegged at $1.06 per share, suggesting an increase of 11.6% from the prior-year reported figure.

The stock has gained 18.4% over a year. The long-term earnings growth rate for JKHY is currently projected at 17%.

Broadcom is slated to report first-quarter fiscal 2022 results on Jun 2. The Zacks Consensus Estimate for AVGO’s earnings is pegged at $8.72 per share, suggesting an increase of 31.7% from the prior-year reported figure.

The stock has gained 22% over a year. The long-term earnings growth rate for AVGO is currently projected at 14.5%.

Jabil is slated to report third-quarter fiscal 2022 results on Jun 16. The Zacks Consensus Estimate for JBL’s earnings is pegged at $1.62 per share, suggesting an increase of 24.6% from the prior-year reported figure.

The stock has gained 4.3% over a year. The long-term earnings growth rate for JBL is currently projected at 12%.


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