The 10-second takeaway
For the quarter ended April 1 (Q1), Teradyne beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Teradyne booked revenue of $396.7 million. The 12 analysts polled by S&P Capital IQ hoped for revenue of $382.3 million on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $377.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.30. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.28 per share on the same basis. GAAP EPS of $0.15 for Q1 were 63% lower than the prior-year quarter's $0.41 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 48.1%, 290 basis points worse than the prior-year quarter. Operating margin was 11.2%, 970 basis points worse than the prior-year quarter. Net margin was 8.5%, 1,670 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $412.8 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $1.65 billion. The average EPS estimate is $1.53.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 286 members rating the stock outperform and 26 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 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 $19.73.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.