Yahoo Finance

• Fourth Quarter Revenue: $753 million.

• Non-GAAP EPS (Q4): $0.95.

• Full Year Revenue (2024): $2.8 billion.

• Full Year Non-GAAP EPS (2024): $3.22.

• Free Cash Flow (2024): Over $470 million.

• Gross Margin (Q4): 59.4%.

• Operating Profit Rate (Q4): 22%.

• Semi Test Revenue (Q4): $561 million.

• SOC Revenue (Q4): $429 million.

• Memory Revenue (Q4): $112 million.

• Robotics Revenue (Q4): $98 million.

• Memory Business Growth (2024): 30% year over year.

• SOC and Memory Revenue Growth (2024): 17% year over year.

• Robotics Revenue (2024): $365 million.

• Q1 2025 Revenue Guidance: $660 to $700 million.

• Q1 2025 Non-GAAP EPS Guidance: $0.58 to $0.68.

• Full Year 2025 Gross Margin Guidance: 59% to 60%.

• Full Year 2025 OpEx Growth Guidance: 8% to 10% year over year.

• Warning! GuruFocus has detected 4 Warning Signs with TER.

Release Date: January 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Teradyne Inc (NASDAQ:TER) achieved a 17% year-over-year growth in SOC and memory test revenue, driven by AI accelerator ASICs, networking, and HBM DRAM.

• The company successfully diversified its customer base, reducing reliance on the mobile market and achieving a 50% market share in computing VIPs.

• Teradyne Inc (NASDAQ:TER) reported a 5% overall revenue growth in 2024, with an 8% growth excluding the divestiture of the DIS business.

• The company generated over $470 million in free cash flow and increased earnings per share by 10% year over year.

• Teradyne Inc (NASDAQ:TER) announced a strategic partnership with Infineon to accelerate its roadmap in the power semiconductor space, enhancing its position in the automotive and renewables market.

Negative Points

• The industrial automation market remained weak, impacting Teradyne Inc (NASDAQ:TER)'s robotics business, which underperformed expectations.

• Robotics revenue was down slightly, with the business experiencing a 13% non-GAAP operating loss for both Q4 and the full year.

• The memory test market is expected to be flat in 2025 due to customers absorbing capacity with higher productivity tools.

• Teradyne Inc (NASDAQ:TER) faced challenges in its wireless test business, with revenue down from 2023 due to a slower ramp of Wi-Fi 7.

• The company anticipates a modest recovery in mobile, automotive, and industrial markets in the second half of 2025, indicating ongoing market uncertainties.

Q & A Highlights

Q: Can you expand on your outlook for low single-digit share growth in semi test and potential upside if noncompute businesses recover better than expected? A: Gregory Smith, CEO: Our outlook for low single-digit growth in share is driven by maintaining our 50% share in compute VIPs as the TAM grows, incremental improvement in mobile due to increasing complexity, and modest growth in automotive due to increased semiconductor content. In industrial, AI compute's power needs are indirectly driving demand. In memory, a gradual recovery in mobile and strong demand for DRAM in AI servers support low single-digit share growth.