Shares of Teradyne (NASDAQ:TER) gained 7.6% on Wednesday, after the electronics testing equipment manufacturer reported earnings that came in ahead of expectations. It's the second straight quarter of outperformance for the company, continuing a great start to 2019.
Teradyne reported first-quarter earnings of $0.54 per share on revenue of $494 million, surpassing analyst consensus estimates of $0.44 per share in earnings on revenue of $476.15 million. The company, a maker of semiconductor test equipment as well as equipment for wireless products and other peripherals, said results came in above guidance because test shipments were slightly better than expected and included robust demand for higher-margin products.
This is the second straight earnings beat for Teradyne, after easily surpassing analyst expectations in the fourth quarter of 2018. The shares have been a top performer so far in 2019, up 52.9% year to date.
The company also in the quarter acquired Lemsys of Switzerland for an undisclosed sum to augment its portfolio of test equipment for the semiconductor industry.
Teradyne management expects second quarter earnings of $0.56 to $0.65 per share on revenue of $520 million to $550 million, meaning results could come in ahead of current analyst expectations for earnings of $0.58 per share on revenue of $538.61 million. But the company's outlook for the full year remains "essentially unchanged," CEO Mark Jagiela said in a statement.
Given how far the shares have climbed already in 2019, it's probably best for management to try to temper expectations for the quarters to come.