Shares of automatic test equipment specialist Teradyne (NASDAQ:TER) jumped on Thursday. The stock was up more than 11% as of 11:50 a.m. EDT.
The tech stock's move higher follows the company's strong earnings report earlier this week as well as a number of analyst upgrades for the stock since then.
Teradyne said its third-quarter revenue increased 16% year over year to $951 million. Zooming out two years, quarterly revenue is notably up 63%. Adjusted earnings per share for the period rose 35% year over year and 106% from levels two years ago.
"Demand for both our Test and Industrial Automation products remained strong in Q3 and we delivered our eighth consecutive quarter of double-digit, year on year revenue and profit growth," CEO Mark Jagiela said in the company's third-quarter earnings release.
Since then, analysts from Craig-Hallum, UBS, and Cowen have all upgraded their ratings for the stock to buy or an equivalent rating.
Cowen praised the company's healthy profit margins and robust growth in its core semiconductor testing and industrial automation markets. Craig-Hallum and UBS are similarly bullish on the company's semiconductor testing business.
Looking to the fourth quarter, management said it expects revenue to be between $820 million and $900 million. The midpoint of this range represents 13% year-over-year growth. Management expects "growing demand in Industrial/Automotive Test, Storage Test, and Industrial Automation" to fuel the quarter, according to its third-quarter earnings release.