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Teradyne, Inc. (TER), headquartered in North Reading, Massachusetts, is a leading global semiconductor company that designs, manufactures, and markets automated test systems and robotics products. Valued at $22.3 billion by market cap, the company's test equipment products and services include, semiconductor test systems, military, aerospace test instrumentation, circuit-board test, inspection systems, automotive diagnostic, and test systems. The leading supplier of automated test solutions is expected to announce its fiscal fourth-quarter earnings for 2024 on Tuesday, Feb. 4.
Ahead of the event, analysts expect TER to report a profit of $0.90 per share on a diluted basis, up 13.9% from $0.79 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last three quarterly reports.
For the full year, analysts expect TER to report EPS of $3.17, up 8.2% from $2.93 in fiscal 2023. Its EPS is expected to rise 29.7% year over year to $4.11 in fiscal 2025.
TER stock has outperformed the S&P 500’s ($SPX) 24.4% gains over the past 52 weeks, with shares up 29.5% during this period. Similarly, it outperformed the Technology Select Sector SPDR Fund’s (XLK) 23.9% gains over the same time frame.
TER’s outperformance is fueled by strong AI-driven demand and expanding opportunities in the robotics market, bolstered by the launch of new products such as Universal Robots heavy-payload robots and the AI-enabled MiR1200 Pallet Jack. Furthermore, its recent partnership with NVIDIA Corporation (NVDA) has advanced Teradyne's robotics capabilities into its automation solutions.
On Oct. 23, TER reported its Q3 results and its shares closed down more than 11% in the following trading session. Its adjusted EPS of $0.90 surpassed Wall Street expectations of $0.78. The company’s revenue was $737.3 million, beating Wall Street forecasts of $714.1 million. For Q4, TER expects adjusted EPS to be between $0.80 and $0.97, and it expects revenue to be between $710 million and $760 million.
Analysts’ consensus opinion on TER stock is bullish, with a “Strong Buy” rating overall. Out of 16 analysts covering the stock, 12 advise a “Strong Buy” rating, three give a “Hold,” and one recommends a “Moderate Sell.” TER’s average analyst price target is $141.19, indicating a potential upside of 2.9% from the current levels.
