We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Teradyne (TER) Beats Earnings and Revenue Estimates in Q2
Read MoreHide Full Article
Teradyne Inc. (TER - Free Report) reported second-quarter 2016 earnings of 55 cents per share, surpassing the Zacks Consensus Estimate of 50 cents. Adjusted earnings per share exclude one-time items but include stock-based compensation expense.
Revenues of $532.0 million increased 23.4% sequentially and 3.7% year over year. Also, the figure came above the Zacks Consensus Estimate of $525.0 million and on the high end of management’s guided range of $510–$540 million.
Approximately 82% of revenues came from semiconductor testing platforms, 9% from system test business, 5% from Industrial Automation, and the remaining 4% from wireless test.
Bookings
Total orders amounted to $471.0 million, down 21.1% sequentially. On a sequential basis, Semiconductor Test orders were down 4.2% to $391.0 million and Systems Test orders were down 34.8% to $30.0 million. However, Industrial Automation orders increased 44.4% to $26 million and Wireless Test Group orders decreased 15.0% to $23 million.
Margins
Pro-forma gross margin was 53.2%, down 19 basis points (bps) sequentially and 519 bps year over year. The decrease was due to an unfavorable mix.
Total adjusted operating expenses of $158.4 million increased 3.8% sequentially and 3.6% year over year. As a percentage of sales, engineering & development expenses decreased, while selling & administrative expenses increased. Adjusted operating margin came in at 23.4%, up 544 bps sequentially but down 516 bps year over year.
GAAP net loss was $223.5 million in the second quarter. In the prior-year quarter, the company had reported earnings of $102.9 million. Excluding special items but including stock-based compensation expense, non-GAAP net income came in at $111.7 million or 55 cents per share compared with $114.2 million or 53 cents in the year-ago quarter.
Balance Sheet
Teradyne ended the quarter with cash and cash equivalents and marketable securities balance of $823.2 million, up from $729.4 million in the prior quarter. Trade receivables were $349.5 million, up from $254.0 million in the last quarter.
Cash flow from operations was $180.7 million compared with $26.7 million in the previous quarter. Capex was $26.3 million compared with $20.3 million in the first quarter.
Share Repurchase/Dividend
In the reported quarter, Teradyne paid $28.8 million for share repurchases and $12.2 million as dividend.
Q3 Guidance
Management expects third-quarter revenues in the $375–$405 million range, down 26.7% sequentially at the mid-point. The Zacks Consensus Estimate is pegged at $475.9 million.
Non-GAAP earnings per share from continuing operations are likely to range within 23 cents to 30 cents. The Zacks Consensus Estimate is pegged at 43 cents. GAAP earnings are expected in the range of 22–30 cents.
Teradyne is a leading provider of automated test equipment. The company reported decent second-quarter results, with both the top line and the bottom line outperforming the respective Zacks Consensus Estimate.
Given the popularity of its products, the Universal Robots acquisition and continuous design win momentum, we are optimistic about Teradyne’s performance over the long term. However, weakness in the wireless test market could be a concern in the near term.
Stocks to Consider
Currently, Teradyne has a Zacks Rank #3 (Hold). Some better-ranked stocks in the technology sector are NVIDIA Corporation (NVDA - Free Report) and Cognex Corporation (CGNX - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Intel Corp. (INTC - Free Report) , carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Teradyne (TER) Beats Earnings and Revenue Estimates in Q2
Teradyne Inc. (TER - Free Report) reported second-quarter 2016 earnings of 55 cents per share, surpassing the Zacks Consensus Estimate of 50 cents. Adjusted earnings per share exclude one-time items but include stock-based compensation expense.
Revenues
Revenues of $532.0 million increased 23.4% sequentially and 3.7% year over year. Also, the figure came above the Zacks Consensus Estimate of $525.0 million and on the high end of management’s guided range of $510–$540 million.
Approximately 82% of revenues came from semiconductor testing platforms, 9% from system test business, 5% from Industrial Automation, and the remaining 4% from wireless test.
Bookings
Total orders amounted to $471.0 million, down 21.1% sequentially. On a sequential basis, Semiconductor Test orders were down 4.2% to $391.0 million and Systems Test orders were down 34.8% to $30.0 million. However, Industrial Automation orders increased 44.4% to $26 million and Wireless Test Group orders decreased 15.0% to $23 million.
Margins
Pro-forma gross margin was 53.2%, down 19 basis points (bps) sequentially and 519 bps year over year. The decrease was due to an unfavorable mix.
Total adjusted operating expenses of $158.4 million increased 3.8% sequentially and 3.6% year over year. As a percentage of sales, engineering & development expenses decreased, while selling & administrative expenses increased. Adjusted operating margin came in at 23.4%, up 544 bps sequentially but down 516 bps year over year.
GAAP net loss was $223.5 million in the second quarter. In the prior-year quarter, the company had reported earnings of $102.9 million. Excluding special items but including stock-based compensation expense, non-GAAP net income came in at $111.7 million or 55 cents per share compared with $114.2 million or 53 cents in the year-ago quarter.
Balance Sheet
Teradyne ended the quarter with cash and cash equivalents and marketable securities balance of $823.2 million, up from $729.4 million in the prior quarter. Trade receivables were $349.5 million, up from $254.0 million in the last quarter.
Cash flow from operations was $180.7 million compared with $26.7 million in the previous quarter. Capex was $26.3 million compared with $20.3 million in the first quarter.
Share Repurchase/Dividend
In the reported quarter, Teradyne paid $28.8 million for share repurchases and $12.2 million as dividend.
Q3 Guidance
Management expects third-quarter revenues in the $375–$405 million range, down 26.7% sequentially at the mid-point. The Zacks Consensus Estimate is pegged at $475.9 million.
Non-GAAP earnings per share from continuing operations are likely to range within 23 cents to 30 cents. The Zacks Consensus Estimate is pegged at 43 cents. GAAP earnings are expected in the range of 22–30 cents.
TERADYNE INC Price, Consensus and EPS Surprise
TERADYNE INC Price, Consensus and EPS Surprise | TERADYNE INC Quote
Conclusion
Teradyne is a leading provider of automated test equipment. The company reported decent second-quarter results, with both the top line and the bottom line outperforming the respective Zacks Consensus Estimate.
Given the popularity of its products, the Universal Robots acquisition and continuous design win momentum, we are optimistic about Teradyne’s performance over the long term. However, weakness in the wireless test market could be a concern in the near term.
Stocks to Consider
Currently, Teradyne has a Zacks Rank #3 (Hold). Some better-ranked stocks in the technology sector are NVIDIA Corporation (NVDA - Free Report) and Cognex Corporation (CGNX - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Intel Corp. (INTC - Free Report) , carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>