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Teradyne (TER) to Report Q3 Earnings: What's in the Cards?

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Teradyne (TER - Free Report) is scheduled to report third-quarter 2021 results on Oct 26.

For the third quarter, the company expects revenues between $880 million and $960 million. The Zacks Consensus Estimate for sales is pegged at $941.29 million, indicating an improvement of 14.9% from the year-ago reported value.

Further, it anticipates non-GAAP earnings between $1.29 and $1.55 per share for third-quarter 2021. The consensus mark for earnings per share is pegged at $1.45, indicating a 22.9% rise from the previous-year reported figure.

It surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average earnings surprise being 8.5%.

Teradyne, Inc. Price and EPS Surprise

Teradyne, Inc. Price and EPS Surprise

Teradyne, Inc. price-eps-surprise | Teradyne, Inc. Quote

Key Factors to Note

The company’s solid momentum across the Test business and recovery in the Industrial Automation business are likely to get reflected in third-quarter results.

Rising semi content and complexity per automobile have been aiding the growth of the test market. This might have remained a tailwind during the quarter.

Growing smartphone unit shipments are expected to have continued driving the mobility segment in the to-be-reported quarter.

Increasing adoption of hard disk drive and system-level test is anticipated to have aided the performance of Storage Test in the quarter under discussion.

Strength in both system-on-a-chip and memory test markets might have been a tailwind for semiconductor test revenues.

Improvement in Wireless Test owing to persistent WiFi six growth and early WiFi seven investments are likely to have aided its quarterly performance.

Also, increasing demand for ultra wideband might have remained a positive factor in driving the company’s LitePoint business.

It has been witnessing strong demand in both flash and DRAM in the Memory test business. This is likely to be reflected in the to-be-reported quarter’s results.

Further, solid adoption of Universal Robots and Mobile Industrial Robots products across various applications is likely to have benefited the Industrial Automation business.

Apart from this, strong automotive, analog and industrial demand is likely to have remained positives in the quarter under review.

Yet, the company has been experiencing shipment delays in automotive and industrial test markets due to a challenging supply environment. This is expected to get reflected in the upcoming quarterly results.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Teradyne this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Teradyne has an Earnings ESP of -2.42% and a Zacks Rank #2, at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Amphenol Corporation (APH - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank of 2, at present.

CACI International (CACI - Free Report) has an Earnings ESP of +4.43% and a Zacks Rank of 2, at present.

Hayward Holdings (HAYW - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank of 3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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