The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Teradyne met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share contracted to a loss.
Gross margins expanded, operating margins contracted, net margins contracted.
Teradyne logged revenue of $248.4 million. The 14 analysts polled by S&P Capital IQ hoped for revenue of $247.4 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $297.0 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 $0.07. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS were -$0.09 for Q4 compared to $0.61 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 50.5%, 50 basis points better than the prior-year quarter. Operating margin was -10.0%, 1,450 basis points worse than the prior-year quarter. Net margin was -6.7%, 5,220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $312.5 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $1.66 billion. The average EPS estimate is $1.56.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 289 members out of 312 rating the stock outperform, and 23 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Teradyne a green thumbs-up, and three 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 $19.03.
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