Uncovering Potential: Teradyne's Earnings Preview

Teradyne TER is preparing to release its quarterly earnings on Wednesday, 2024-10-23. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Teradyne to report an earnings per share (EPS) of $0.78.

Investors in Teradyne are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Past Earnings Performance

The company's EPS beat by $0.09 in the last quarter, leading to a 13.38% drop in the share price on the following day.

Here's a look at Teradyne's past performance and the resulting price change:

Performance of Teradyne Shares

Shares of Teradyne were trading at $125.93 as of October 21. Over the last 52-week period, shares are up 43.2%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Insights Shared by Analysts on Teradyne

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Teradyne.

The consensus rating for Teradyne is Neutral, based on 8 analyst ratings. With an average one-year price target of $149.62, there's a potential 18.81% upside.

Peer Ratings Comparison

In this analysis, we delve into the analyst ratings and average 1-year price targets of Entegris, Enphase Energy and Onto Innovation, three key industry players, offering insights into their relative performance expectations and market positioning.

• As per analysts' assessments, Entegris is favoring an Buy trajectory, with an average 1-year price target of $143.83, suggesting a potential 14.21% upside.
• The consensus outlook from analysts is an Neutral trajectory for Enphase Energy, with an average 1-year price target of $112.53, indicating a potential 10.64% downside.
• As per analysts' assessments, Onto Innovation is favoring an Outperform trajectory, with an average 1-year price target of $255.0, suggesting a potential 102.49% upside.

Snapshot: Peer Analysis

The peer analysis summary provides a snapshot of key metrics for Entegris, Enphase Energy and Onto Innovation, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Teradyne ranks highest in revenue growth among its peers. It also leads in gross profit margin. However, it has the lowest return on equity compared to its peers.

All You Need to Know About Teradyne

Teradyne provides testing equipment, including automated test equipment for semiconductors, system testing for hard disk drives, circuit boards, and electronics systems and wireless testing for devices. The firm entered the industrial automation market in 2015, into which it sells collaborative and autonomous robots for factory applications. Teradyne serves numerous end markets and geographies directly and indirectly with its products, but its most significant exposure is to semiconductor testing. Teradyne serves vertically integrated, fabless, and foundry chipmakers with its equipment.

Teradyne: Financial Performance Dissected

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, Teradyne showcased positive performance, achieving a revenue growth rate of 6.64% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Teradyne's net margin excels beyond industry benchmarks, reaching 25.52%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.04%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Teradyne's ROA excels beyond industry benchmarks, reaching 5.29%. This signifies efficient management of assets and strong financial health.

Debt Management: Teradyne's debt-to-equity ratio is below the industry average. With a ratio of 0.03, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Teradyne visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.