Teradyne (TER - Free Report) reported third-quarter 2023 earnings of 80 cents per share, surpassing the Zacks Consensus Estimate by 11.11% but declining 30.4% year over year.
Revenues of $704 million surpassed the Zacks Consensus Estimate by 2.83% and fell 14.9% year over year.
Quarter Details
Revenues from Semiconductor Test platforms, System Test business, Wireless Test business and Robotics were $498 million (70.7% of total revenues), $83 million (11.8%), $37 million (5.3%) and $86 million (12.2%), respectively.
Teradyne witnessed stable demand in Robotics. In the reported quarter, revenues dropped 4% year over year and increased 20% sequentially.
Gross margin was 56.6%, which contracted 212 basis points (bps) year over year.
In the reported quarter, selling and administrative expenses increased 2% year over year to $138.3 million. As a percentage of revenues, selling and marketing expenses were 19.6% compared with 16.4% reported in the year-ago quarter.
Engineering and Development, as a percentage of revenues, increased 130 basis points (bps) on a year-over-year basis to 14.8%.
Balance Sheet & Cash Flow
As of Oct 1, 2023, Teradyne’s cash, and cash equivalents (including marketable securities) were $716.5 million, lower than $708.4 million as of Jul 2, 2023.
Net cash provided by operating activities was $174.3 million for the third quarter, up from $142.8 million in the prior quarter.
The company returned $136 million to shareholders in the form of share repurchases and dividends in the reported quarter.
Guidance
For the fourth quarter of 2023, Teradyne expects revenues between $640 million and $700 million. The Zacks Consensus Estimate for the fourth quarter of 2023 is pegged at 692.14 million, indicating a year-over-year decline of 5.42%.
Non-GAAP earnings are expected between 58 cents and 78 cents per share for fourth-quarter 2023. The Zacks Consensus Estimate for fourth-quarter earnings has declined by a penny to $0.78 per share over the past 30 days, indicating a decline of 15.22% year over year.
Zacks Rank & Stocks to Consider
Currently, Teradyne carries a Zacks Rank #4 (Sell).
TER’s shares have returned 0.6% compared with the Zacks Computer and Technology sector’s rise of 30% year to date.
Here are some better-ranked stocks worth considering in the broader sector.
GoDaddy (GDDY - Free Report) , Itron (ITRI - Free Report) and Pinterest (PINS - Free Report) are some better-ranked stocks that investors can consider in the broader sector.
All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GoDaddy shares have declined 3.2% year to date. GoDaddy is scheduled to release third-quarter 2023 results on Nov 2.
Itron shares have returned 14.3% year to date. ITRI is set to report its third-quarter 2023 results on Nov 2.
Pinterest shares have declined 1% year to date. PINS is set to report its third-quarter 2023 results on Oct 30.
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Teradyne (TER - Free Report) reported third-quarter 2023 earnings of 80 cents per share, surpassing the Zacks Consensus Estimate by 11.11% but declining 30.4% year over year.
Revenues of $704 million surpassed the Zacks Consensus Estimate by 2.83% and fell 14.9% year over year.
Quarter Details
Revenues from Semiconductor Test platforms, System Test business, Wireless Test business and Robotics were $498 million (70.7% of total revenues), $83 million (11.8%), $37 million (5.3%) and $86 million (12.2%), respectively.
Teradyne witnessed stable demand in Robotics. In the reported quarter, revenues dropped 4% year over year and increased 20% sequentially.
Gross margin was 56.6%, which contracted 212 basis points (bps) year over year.
In the reported quarter, selling and administrative expenses increased 2% year over year to $138.3 million. As a percentage of revenues, selling and marketing expenses were 19.6% compared with 16.4% reported in the year-ago quarter.
Engineering and Development, as a percentage of revenues, increased 130 basis points (bps) on a year-over-year basis to 14.8%.
Balance Sheet & Cash Flow
As of Oct 1, 2023, Teradyne’s cash, and cash equivalents (including marketable securities) were $716.5 million, lower than $708.4 million as of Jul 2, 2023.
Net cash provided by operating activities was $174.3 million for the third quarter, up from $142.8 million in the prior quarter.
The company returned $136 million to shareholders in the form of share repurchases and dividends in the reported quarter.
Guidance
For the fourth quarter of 2023, Teradyne expects revenues between $640 million and $700 million. The Zacks Consensus Estimate for the fourth quarter of 2023 is pegged at 692.14 million, indicating a year-over-year decline of 5.42%.
Non-GAAP earnings are expected between 58 cents and 78 cents per share for fourth-quarter 2023. The Zacks Consensus Estimate for fourth-quarter earnings has declined by a penny to $0.78 per share over the past 30 days, indicating a decline of 15.22% year over year.
Zacks Rank & Stocks to Consider
Currently, Teradyne carries a Zacks Rank #4 (Sell).
TER’s shares have returned 0.6% compared with the Zacks Computer and Technology sector’s rise of 30% year to date.
Here are some better-ranked stocks worth considering in the broader sector.
GoDaddy (GDDY - Free Report) , Itron (ITRI - Free Report) and Pinterest (PINS - Free Report) are some better-ranked stocks that investors can consider in the broader sector.
All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GoDaddy shares have declined 3.2% year to date. GoDaddy is scheduled to release third-quarter 2023 results on Nov 2.
Itron shares have returned 14.3% year to date. ITRI is set to report its third-quarter 2023 results on Nov 2.
Pinterest shares have declined 1% year to date. PINS is set to report its third-quarter 2023 results on Oct 30.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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