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With a market cap of $14.2 billion, Teradyne, Inc. (TER) is a global supplier of automated test equipment and robotics solutions. Headquartered in North Reading, Massachusetts, the company operates through three segments: Semiconductor Test; Robotics; and Other.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and Teradyne fits this criterion perfectly. The company designs, develops, manufactures, and sells automated test systems and robotics products for semiconductors, as well as collaborative robots and mobile robots.
The company crumbled 44.6% from its 52-week high of $163.21. Shares of TER have dropped 30.5% over the past three months, lagging behind the Technology Select Sector SPDR Fund’s (XLK) 9.3% decrease.
In long term, TER has fallen 30.5% YTD, trailing XLK's 7.9% decline. In addition, shares of Teradyne have dipped nearly 21.5% over the past 52 weeks, underperforming XLK’s 1.9% return over the same time frame.
In spite of some fluctuations, the stock has been trading below its 50-day and 200-day moving averages since January.
Despite exceeding Wall Street expectations with Q4 2024 adjusted EPS of $0.95 and revenue of $752.9 million on Jan. 29, Teradyne shares fell 5.7% the next day due to weaker-than-expected Q1 2025 guidance. The company projected Q1 revenue between $660 million and $700 million and adjusted EPS of $0.58 to $0.68, signaling a sequential slowdown from Q4 levels. Investors were also concerned about rising R&D expenses, which jumped 25.6% year-over-year, impacting margins despite a 280 bps gross margin expansion.
In contrast, rival ACM Research, Inc. (ACMR) has outpaced TER. ACMR shares have soared 77.9% on a YTD basis and declined 11% in the last 52 weeks.
Despite TER’s underperformance over the past year, analysts are moderately optimistic about its prospects. TER has a consensus rating of “Moderate Buy” from the 16 analysts covering the stock and, as of writing, is trading below the mean price target of $116.19.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
