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Investors in Teradyne, Inc. (NASDAQ:TER) had a good week, as its shares rose 5.0% to close at US$74.89 following the release of its first-quarter results. The result was positive overall - although revenues of US$686m were in line with what the analysts predicted, Teradyne surprised by delivering a statutory profit of US$0.61 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Teradyne's 17 analysts is for revenues of US$2.98b in 2025. This would reflect a modest 2.5% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to decline 11% to US$3.21 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.98b and earnings per share (EPS) of US$3.22 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for Teradyne
The consensus price target fell 6.4% to US$104, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Teradyne at US$155 per share, while the most bearish prices it at US$69.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Teradyne's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.3% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 2.6% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 16% per year. Although Teradyne's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.