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Semiconductor testing company Teradyne (NASDAQ:TER) will be reporting results tomorrow after market hours. Here’s what to look for.
Teradyne beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $737.3 million, up 4.8% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Is Teradyne a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Teradyne’s revenue to grow 10.5% year on year to $740.9 million, a reversal from the 8.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.91 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 2.9% 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. Texas Instruments’s revenues decreased 1.7% year on year, beating analysts’ expectations by 3.5%, and Seagate Technology reported revenues up 49.5%, in line with consensus estimates. Texas Instruments traded down 7.5% following the results while Seagate Technology was up 6.8%.
Read our full analysis of Texas Instruments’s results here and Seagate Technology’s results here.
Investors in the semiconductors segment have had steady hands going into earnings, with share prices flat over the last month. Teradyne is down 4.9% during the same time and is heading into earnings with an average analyst price target of $142.66 (compared to the current share price of $120.50).
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