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 Q1
Read MoreHide Full Article
Teradyne Inc. (TER - Free Report) reported first-quarter 2018 earnings of 45 cents per share, surpassing the Zacks Consensus Estimate by 42 cents. Earnings decreased 3% sequentially but increased 3% year over year.
Given the popularity of its products, acquisition of Universal Robots and continuous design wins, we are optimistic about Teradyne’s performance in the long run. However, weakness in the wireless Test market could be a near-term concern.
On a 12-month basis, the stock has underperformed the industry it belongs to. It has returned 23.7% compared with the industry’s gain of 24.6%.
Revenues
Revenues of $487.5 million increased 1.7% sequentially and 6.7% year over year. Also, the figure came in above the Zacks Consensus Estimate of $476 million and within management’s guided range of $460-$490 million.
Approximately 76% of the revenues came from semiconductor Testing platforms, 10% from Industrial Automation, 9% from system Test business and the remaining 5% from wireless Test business.
During the quarter, Memory Test sales were up 210% from the year-ago quarter, while the same from Universal Robots were up 34% year over year.
Margins
According to the press release, pro-forma gross margin was 55.3%, down 120 basis points (bps) sequentially and 270 bps from the prior-year quarter. The decrease was due to unfavorable mix.
Total adjusted operating expenses of $164.9 million increased 2.6% year over year. As a percentage of sales, selling & administrative expenses remained flat, while the same from engineering & development decreased. As a result, adjusted operating margin came in at 21.5%, down 170 bps sequentially and 130 bps from the year-ago quarter.
Balance Sheet
Teradyne ended the quarter with Trade receivables of $414 million, up from $272.8 million last quarter.
Cash flow from operations was ($81.9) million compared with $147.5 million in the previous quarter. Capex was $34.8 million compared with $32.1 million in the fourth quarter.
Share Repurchase/Dividend
In the reported quarter, Teradyne spent $134.3 million on share repurchases and paid $17.6 million as dividend.
Q2 Guidance
Management expects second-quarter revenues in the range of $490-$520 million, increasing 4% sequentially at the midpoint. The Zacks Consensus Estimate is pegged at $698.3 million.
Non-GAAP earnings per share from continuing operations are likely to be in the range of 45-52 cents. The Zacks Consensus Estimate is pegged at 95 cents. GAAP earnings are expected within 39-46 cents.
Long-term earnings per share growth rate for Internap, Etsy and HealthStream is projected to be 2%, 17.3% and 16%, respectively.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Teradyne (TER) Beats Earnings and Revenue Estimates in Q1
Teradyne Inc. (TER - Free Report) reported first-quarter 2018 earnings of 45 cents per share, surpassing the Zacks Consensus Estimate by 42 cents. Earnings decreased 3% sequentially but increased 3% year over year.
Given the popularity of its products, acquisition of Universal Robots and continuous design wins, we are optimistic about Teradyne’s performance in the long run. However, weakness in the wireless Test market could be a near-term concern.
On a 12-month basis, the stock has underperformed the industry it belongs to. It has returned 23.7% compared with the industry’s gain of 24.6%.
Revenues
Revenues of $487.5 million increased 1.7% sequentially and 6.7% year over year. Also, the figure came in above the Zacks Consensus Estimate of $476 million and within management’s guided range of $460-$490 million.
Approximately 76% of the revenues came from semiconductor Testing platforms, 10% from Industrial Automation, 9% from system Test business and the remaining 5% from wireless Test business.
During the quarter, Memory Test sales were up 210% from the year-ago quarter, while the same from Universal Robots were up 34% year over year.
Margins
According to the press release, pro-forma gross margin was 55.3%, down 120 basis points (bps) sequentially and 270 bps from the prior-year quarter. The decrease was due to unfavorable mix.
Total adjusted operating expenses of $164.9 million increased 2.6% year over year. As a percentage of sales, selling & administrative expenses remained flat, while the same from engineering & development decreased. As a result, adjusted operating margin came in at 21.5%, down 170 bps sequentially and 130 bps from the year-ago quarter.
Balance Sheet
Teradyne ended the quarter with Trade receivables of $414 million, up from $272.8 million last quarter.
Cash flow from operations was ($81.9) million compared with $147.5 million in the previous quarter. Capex was $34.8 million compared with $32.1 million in the fourth quarter.
Share Repurchase/Dividend
In the reported quarter, Teradyne spent $134.3 million on share repurchases and paid $17.6 million as dividend.
Q2 Guidance
Management expects second-quarter revenues in the range of $490-$520 million, increasing 4% sequentially at the midpoint. The Zacks Consensus Estimate is pegged at $698.3 million.
Non-GAAP earnings per share from continuing operations are likely to be in the range of 45-52 cents. The Zacks Consensus Estimate is pegged at 95 cents. GAAP earnings are expected within 39-46 cents.
Teradyne, Inc. Price, Consensus and EPS Surprise
Teradyne, Inc. Price, Consensus and EPS Surprise | Teradyne, Inc. Quote
Stocks to Consider
Teradyne carries a Zacks Rank #3 (Hold). Other top-ranked stocks in the technology sector are Internap Corporation , Etsy, Inc. (ETSY - Free Report) and HealthStream, Inc. (HSTM - Free Report) , each sporting a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank(Strong Buy) stocks here.
Long-term earnings per share growth rate for Internap, Etsy and HealthStream is projected to be 2%, 17.3% and 16%, respectively.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>