The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Teradyne beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Margins grew across the board.
Teradyne booked revenue of $463.4 million. The 12 analysts polled by S&P Capital IQ hoped for sales of $439.5 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $344.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.53. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.45 per share. GAAP EPS of $0.39 for Q3 were 56% higher than the prior-year quarter's $0.25 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.2%, 690 basis points better than the prior-year quarter. Operating margin was 23.5%, 580 basis points better than the prior-year quarter. Net margin was 19.1%, 320 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $347.7 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $1.74 billion. The average EPS estimate is $1.74.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 287 members out of 311 rating the stock outperform, and 24 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give Teradyne a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Teradyne is outperform, with an average price target of $20.61.
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