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Teradyne (TER) to Report Q2 Earnings: What's in the Offing?

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Teradyne (TER - Free Report) is scheduled to report its second-quarter 2023 results on Jul 26.

For the second quarter, TER expects revenues between $625 million and $685 million. The Zacks Consensus Estimate for sales is pegged at $657.1 million, indicating a decline of 21.8% from the year-ago quarter’s reported value.

Teradyne anticipates non-GAAP earnings per share between 55 cents and 74 cents. The consensus mark for earnings is pegged at 66 cents, indicating a 45.5% fall from the previous-year quarter’s reported figure.

TER’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 18%.

Factors to Consider

Teradyne is expected to have benefited from improving demand for semiconductor test equipment in the automotive and industrial end-markets.

Further, the solid adoption of FLASH and DRAM final test services, thanks to ongoing technology transitions, might have been a tailwind.

Additionally, the company's growing efforts to strengthen its global supply chain are expected to have helped it in catering to customer demand during the quarter under review.

However, overall weak demand environment and rising inflationary pressure might have been headwinds for the company. Also, sluggish demand for mobility and computer-related SOC test is likely to have hurt the performance of Teradyne’s Semiconductor Test segment.

The Zacks Consensus Estimate for Semiconductor Test Group revenues is pegged at $462.1 million, indicating a decline of 14.6% from the year-ago reported figure.

This apart, growing shipment of UR20 cobots and the rising demand for Universal Robots in Europe is expected to have benefited the company’s robotics business in the second quarter.

However, sluggish industrial growth might have impacted the company’s Robotics segment.

Additionally, U.S. regulations limiting exports to China could have adversely impacted the top line of the company during the second quarter.

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 0.00% and a Zacks Rank #4 (Sell) at present.

Stocks to Consider

Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in the soon-to-be-reported quarterly results.

Shopify (SHOP - Free Report) has an Earnings ESP of +86.34% and a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.  

Shopify is scheduled to release second-quarter 2023 results on Aug 2. The Zacks Consensus Estimate for SHOP’s earnings is pegged at 6 cents per share. The company reported a loss of 3 cents per share in the year-ago quarter.

Carrier Global (CARR - Free Report) has an Earnings ESP of +1.53% and a Zacks Rank #3 at present.

Carrier is set to report second-quarter 2023 results on Jul 27. The Zacks Consensus Estimate for CARR’s earnings is pegged at 76 cents per share, suggesting growth of 10.1% from the prior-year fiscal period’s reported figure.

Itron (ITRI - Free Report) has an Earnings ESP of +13.78% and sports a Zacks Rank #1 at present.

Itron is scheduled to release second-quarter 2023 results on Aug 3. The Zacks Consensus Estimate for ITRI’s earnings is pegged at 31 cents per share, suggesting a jump from the prior-year quarter’s reported figure of 7 cents.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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