Teradyne, the semiconductor test equipment and advanced robotics maker, beat Wall Street estimates for third-quarter revenue and adjusted earnings per share and issued fourth-quarter guidance slightly above expectations. Yet its shares fell nearly 7% in after-hours trading on Tuesday, highlighting investors’ focus on the outlook as well as reported results.
Revenue rose about 70% year over year
Teradyne reported adjusted earnings of $2.29 per share and revenue of $1.31 billion for the third quarter, which ended in September. Analysts surveyed by FactSet had expected earnings of $2.09 per share on revenue of $1.27 billion.
In the same quarter last year, the company posted adjusted earnings of $0.85 per share and revenue of $769 million. Revenue therefore increased about 70% year over year, while adjusted earnings per share rose by $1.44. Teradyne supplies testing solutions for semiconductor and electronics design and manufacturing, making its results a measure of quarterly performance in its testing equipment business.
Fourth-quarter forecast edges past estimates
For the current quarter, Teradyne forecast adjusted earnings of $2.10 per share and revenue of $1.3 billion. Analysts had expected $2.07 per share and $1.27 billion in revenue. A year earlier, the company reported adjusted earnings of $1.80 per share and revenue of $1.08 billion.
Both elements of the forecast were modestly above consensus. The information available did not include further management comments on orders, demand across business lines or full-year performance, leaving the gap between guidance and analyst estimates relatively narrow. The figures alone do not establish what investors expect from Teradyne’s subsequent results.
After-hours decline reverses part of session’s gain
Teradyne shares rose 4.8% during regular trading on Tuesday, closing at $323.68. After the results were released, the stock fell nearly 7% after hours to about $302. The move diverged from the earnings beat and slightly stronger quarterly guidance; the disclosed information did not explain the immediate reason for the decline.
Headquartered in North Reading, Massachusetts, Teradyne makes test solutions for semiconductors and electronic products and also operates an advanced robotics business. Its robotics products include collaborative and mobile robots for manufacturing and warehouse operations. The results disclosed included third-quarter revenue and adjusted earnings per share, along with fourth-quarter guidance; further details related to the after-hours share move had not yet been provided.