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Tale of the Tape

Zacks Equity Research

Can Teradyne (TER) Keep the Earnings Streak Alive This Quarter?
December 01, 2016

TER

Trades from $3

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Teradyne, Inc. (TER - Free Report) , a firm in the Electronics - Testing Equipment industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, TER has beaten estimates by at least 10% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, TER expected to post earnings of 50 cents per share, while it actually produced earnings of 55 cents per share, a beat of 10%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 27 cents per share, when it actually produced earnings of 33 cents per share instead, representing a 22.2% positive surprise.

TERADYNE INC Price and EPS Surprise

Thanks in part to this history, recent estimates have been moving higher for Teradyne. In fact, the Earnings ESP for TER is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for TER as the firm currently has a Zacks Earnings ESP of 9.09%, so another beat could be around the corner.

This is particularly true when you consider that TER has a great Zacks Rank #1(Strong Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that TER could see another beat at its next report, especially if recent trends are any guide.

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