The 10-second takeaway
For the quarter ended March 31 (Q1), Teradyne beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share contracted significantly.
Gross margins grew, operating margins shrank, net margins dropped.
Teradyne logged revenue of $280.4 million. The 14 analysts polled by S&P Capital IQ looked for revenue of $274.1 million on the same basis. GAAP reported sales were 29% lower than the prior-year quarter's $396.7 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 $0.09. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.03 per share. Non-GAAP EPS of $0.09 for Q1 were 70% lower than the prior-year quarter's $0.30 per share. GAAP EPS of $0.03 for Q1 were 80% lower than the prior-year quarter's $0.15 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 54.7%, 530 basis points better than the prior-year quarter. Operating margin was 1.7%, much worse than the prior-year quarter. Net margin was 2.4%, 610 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $423.6 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $1.62 billion. The average EPS estimate is $1.43.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 288 members out of 312 rating the stock outperform, and 24 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 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 $19.63.
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