Teradyne Q4 Earnings Beat Estimates: Will Raised View Aid Shares?

Teradyne TER reported fourth-quarter 2024 earnings of 95 cents per share, which surpassed the Zacks Consensus Estimate by 5.56% and increased 20.3% year over year.Revenues of $753 million beat the Zacks Consensus Estimate by 1.65% and increased 12.2% year over year. The growth is driven by strong AI-related demand.TER’s shares have risen 26.4% compared with the Zacks Computer and Technology sector’s rise of 29.8% year to date. We believe the raised guidance will help TER stock recover.TER’s Q4 Top-line DetailsRevenues from Semiconductor Test platforms, System Test business, Wireless Test business and Robotics were $561 million (74.5% of total revenues), $58 million (7.7%), $36 million (4.8%) and $98 million (13%), respectively.Teradyne, Inc. Price, Consensus and EPS Surprise Teradyne, Inc. price-consensus-eps-surprise-chart | Teradyne, Inc. QuoteStrong momentum in the memory test end market, driven by High Bandwidth Memory and increased compute demand for AI applications, led to top-line growth. Gross margin was 59.4%, which expanded 280 basis points (bps) year over year.In the reported quarter, selling and administrative expenses increased 9.4% year over year to $155.7 million. As a percentage of revenues, selling and marketing expenses were 20.7%, down 50 bps year over year.Engineering and development expenses increased 25.6% year over year to $128.4 million. As a percentage of revenues, engineering and development expenses expanded 180 bps on a year-over-year basis to 17.1%.TER’s Balance Sheet & Cash FlowAs of Dec. 31, 2024, Teradyne’s cash and cash equivalents (including marketable securities) were $599.6 million, higher than $551.7 million as of Sept. 29, 2024.Net cash provided by operating activities was $2.82 billion in the fourth quarter, up from $1.66 billion in the prior quarter.TER’s Raises Q1 GuidanceFor first-quarter 2025, Teradyne expects revenues between $660 million and $700 million. Non-GAAP earnings are expected to be between 58 cents and 68 cents per share.TER’s Zacks Rank & Other Stocks to ConsiderTeradyne currently carries a Zacks Rank #2 (Buy).BILL Holdings BILL, AMETEK AME and CyberArk Software CYBR are some other top-ranked stocks that investors can consider in the broader sector. While BILL currently sports a Zacks Rank #1 (Strong Buy), AMETEK and CyberArk carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Bill Holdings’ shares have soared 90.8% in the trailing six months. BILL is set to report its second-quarter fiscal 2025 results on Feb. 6.AMETEK shares have gained 5.2% in the trailing six months. AME is set to report its fourth-quarter 2024 results on Feb. 4.CyberArk Software shares have surged 43.6% in the trailing six months. CYBR is set to report its fourth-quarter 2024 results on Feb. 13.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AMETEK, Inc. (AME): Free Stock Analysis Report Teradyne, Inc. (TER): Free Stock Analysis Report CyberArk Software Ltd. (CYBR): Free Stock Analysis Report BILL Holdings, Inc. (BILL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks