Earnings Review and Free Research Report: Teradyne’s Revenue Grew 22.6%; EPS Soared 67.7%

Research Desk Line-up: Brooks Automation Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 16, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Teradyne, Inc. (NYSE: TER), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TER, following the Company’s posting of its financial results on October 25, 2017, for the third quarter of the fiscal year 2017. The Company’s revenue and adjusted EPS surpassed analysts’ expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Semiconductor Equipment & Materials industry. Pro-TD has currently selected Brooks Automation, Inc. (NASDAQ: BRKS) for due-diligence and potential coverage as the Company reported on November 09, 2017, its financial results for Q4 FY17 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Brooks Automation when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TER; also brushing on BRKS. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the three months ended October 01, 2017, Teradyne’s net revenues increased 22.6% to $503.38 million from $410.48 million in Q3 FY16. The increase was due to a strong performance in the Semiconductor Test segment, with greater than expected image sensor test system shipments. The net revenue figures surpassed analysts’ expectations of $473 million.

During Q3 FY17, the Company’s net orders increased 8.4% to $410.23 million from $378.46 million in the same period of last year.

During Q3 FY17, the Company’s gross profit increased 29.7% to $294.79 million from $227.36 million in Q3 FY16. For the reported quarter, the Company’s gross margin increased 320 basis points to 58.6% of revenue from 55.4% of revenue in Q3 FY16. For the reported quarter, the Company’s adjusted gross margin increased 310 basis points to 58.6% of revenue from 55.5% of revenue in Q3 FY16.

For the reported quarter, Teradyne’s selling and administrative expenses increased 9.4% to $86.24 million from $78.79 million in Q3 FY16. For the reported quarter, the Company’s engineering and development expenses increased 8.1% to $77.19 million from $71.40 million in Q3 FY16. During Q3 FY17, the Company’s amortization expenses decreased 17.2% to $7.03 million from $8.49 million in the comparable period of last year.

During Q3 FY17, the Company’s operating income increased 127.8% to $128.73 million from $56.50 million in Q3 FY16. For the reported quarter, the Company’s operating margin increased 1,180 basis points to 25.6% of revenue from 13.8% of revenue in the third quarter of last year. For the reported quarter, the Company’s adjusted operating margin increased 710 basis points to 26.1% of revenue from 19% of revenue in Q3 FY16.

For the reported quarter, Teradyne’s net income increased 62.1% to $103.42 million on a y-o-y basis from $63.79 million in Q3 FY16. During Q3 FY17, the Company’s diluted earnings per share (EPS) increased 67.7% to $0.52 on a y-o-y basis from $0.31 in the corresponding period of last year. For the reported quarter, Teradyne’s adjusted net income increased 59.1% to $107.7 million on a y-o-y basis from $67.7 million in Q3 FY16. During Q3 FY17, the Company’s adjusted diluted EPS increased 63.6% to $0.54 on a y-o-y basis from $0.33 in Q3 FY16, surpassing analysts’ expectations of $0.43.

Segment Details

Semiconductor Test – During Q3 FY17, the Company’s Semiconductor Test segment’s revenue increased 23% to $397 million on a y-o-y basis. For the reported quarter, the segment’s orders decreased 20.1% to $295 million from $369 million in Q2 FY17.

Industrial Automation – During Q3 FY17, the Company’s Industrial Automation segment’s revenue increased 2.6% to $40 million from $39 million in the second quarter of 2017. For the reported quarter, the segment’s orders increased 21.2% to $40 million from $33 million in Q2 FY17.

System Test – During Q3 FY17, the Company’s System Test segment’s revenue decreased 5.4% to $35 million from $37 million in the second quarter of 2017. For the reported quarter, the segment’s orders increased 44.8% to $42 million from $29 million in Q2 FY17.

Wireless Test – During Q3 FY17, the Company’s Wireless Test segment’s revenue increased 10.7% to $31 million from $28 million in the second quarter of 2017. For the reported quarter, the segment’s orders increased 10% to $33 million from $30 million in Q2 FY17.

Balance Sheet

As on October 01, 2017, Teradyne’s cash and cash equivalents increased 36% to $418.68 million from $307.88 million as on December 31, 2016. For the reported quarter, the Company’s long-term debt increased 2.8% to $362.60 million from $352.67 million in Q4 FY16.

During FY17, the Company’s YTD cash provided by operating activities increased 14.6% to $479.02 million from 417.97 million in the same period of last year.

During Q3 FY17, the Company repurchased 1.7 million shares for $57 million, at an average price of $34.23.

Outlook

For Q4 FY17, Teradyne expects revenue to be in the range of $420 million – $450 million, and diluted EPS to be in the band of $0.27 – $0.33. The Company estimates adjusted diluted EPS to be in the range of $0.31 – $0.37 for the fourth quarter of 2017.

Stock Performance

Teradyne’s share price finished yesterday’s trading session at $42.74, dropping 1.41%. A total volume of 1.97 million shares have exchanged hands. The Company’s stock price skyrocketed 26.67% in the last three months, 23.31% in the past six months, and 76.03% in the previous twelve months. Additionally, the stock soared 68.27% since the start of the year. Shares of the Company have a PE ratio of 20.01 and have a dividend yield of 0.66%. The stock currently has a market cap of $8.44 billion.

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