Major U.S. equities indexes fell Tuesday, extending the downtrend for stocks.
Shares of Teradyne (TER) slumped 17% to lead S&P 500 decliners Tuesday, as the maker of testing equipment for chips and electronics updated its guidance in response to the potential impact of Trump administration trade moves.
Teradyne (TER) reported earnings 30 days ago. What's next for the stock?
TER is benefiting from growing demand for AI accelerator ASICs, networking and HBM despite weakness in Robotics, System and Wireless tests.
Teradyne's price drop is seen as an overreaction; AI-driven SoC TAM growth and reduced mobile dependence make it a good entry point. The company's Semi Testing segment shows promise with AI applications driving TAM expansion, while the robotics segment struggles with low margins and growth. Management's optimistic 2028 revenue and EPS targets imply significant growth, but market conditions and Chinese competition pose risks.
Teradyne continues to deserve a buy rating due to strong AI demand. TER's 4Q24 revenue grew 12% y/y, driven by a 30% increase in semiconductor test segment, particularly from AI compute and HBM testing demand. TER's strategic expansion into power semiconductor testing, through a partnership with Infineon, positions it well for future growth in the EV and renewables markets.
TER's fourth-quarter 2024 result beat estimates with strong AI-driven growth in semiconductor testing, despite challenges in industrial automation and robotics.
Teradyne, Inc. (NASDAQ:TER ) Q4 2024 Earnings Conference Call January 30, 2025 8:30 AM ET Company Participants Traci Tsuchiguchi - Vice President of Investor Relations Greg Smith - President & Chief Executive Officer Sanjay Mehta - Vice President & Chief Financial Officer Conference Call Participants Christopher Muse - Cantor Fitzgerald Mehdi Hosseini - Susquehanna Financial Group Jacob Moore - KeyBanc Capital Markets Timothy Arcuri - UBS Investment Bank Krish Sankar - TD Cowen Toshiya Hari - Goldman Sachs Samik Chatterjee - JPMorgan Vivek Arya - Bank of America Brian Chin - Stifel, Nicolaus & Company Shane Brett - Morgan Stanley Operator Greetings and welcome to the Fourth Quarter 2024 Teradyne, Inc. Earnings Conference Call. At this time all participants are in listen-only mode.
TER's fourth-quarter 2024 results benefit from strong momentum in the memory test end market and increased compute demand for AI application.
The maker of semiconductor test equipment posted mixed first-quarter guidance.
Teradyne (TER) came out with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.90 per share. This compares to earnings of $0.79 per share a year ago.
Teradyne forecast first-quarter revenue below Wall Street estimates on Wednesday, indicating softening demand for its semiconductor-testing equipment.