Teradyne (TER) Down 4.7% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Teradyne (TER). Shares have lost about 4.7% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Teradyne due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Teradyne Q3 Earnings Top Estimates, Revenues Up Y/YTeradyne reported third-quarter 2024 earnings of 90 cents per share, which surpassed the Zacks Consensus Estimate by 15.38% and increased 12.5% year over year.Revenues of $737 million beat the Zacks Consensus Estimate by 3.25% and increased 5% year over year. The growth is driven by strong AI-related demand.TER’s Q3 Top-line DetailsRevenues from Semiconductor Test platforms, System Test business, Wireless Test business and Robotics were $543 million (73.6% of total revenues), $73 million (9.9%), $33 million (4.5%) and $89 million (12.1%), respectively.Strong momentum in the memory test end-market, driven by High Bandwidth Memory and increased compute demand for AI applications, drove top-line growth. Gross margin was 59.6%, which expanded 310 basis points (bps) year over year.In the reported quarter, selling and administrative expenses increased 14% year over year to $157.6 million. As a percentage of revenues, selling and marketing expenses were 21.4%, up 170 bps year over year.Engineering and development expenses increased 12.5% year over year to $117.5 million. As a percentage of revenues, engineering and development expenses expanded 110 bps on a year-over-year basis to 15.9%.TER’s Balance Sheet & Cash FlowAs of Sept. 29, 2024, Teradyne’s cash and cash equivalents (including marketable securities) were $551.7 million, higher than $460.5 million as of June 30, 2024.Net cash provided by operating activities was $1.66 billion in the third quarter, down from $2.16 million in the prior quarter.TER’s Raises Q4 GuidanceFor fourth-quarter 2024, Teradyne expects revenues between $710 million and $760 million. Non-GAAP earnings are expected to be between 80 cents and 97 cents per share.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed an upward trend in estimates revision.VGM ScoresCurrently, Teradyne has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Teradyne has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.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 Teradyne, Inc. (TER): 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