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Teradyne slumps 8% on disappointing Q1 guidance

Published 31/01/2024, 11:14 pm
© Reuters.

Shares of Teradyne Inc . (NASDAQ:TER) plunged more than 8% in premarket trading Wednesday after the test equipment designer issued a Q1 earnings guidance that fell short of Wall Street’s estimates.

For Q4, the company reported adjusted earnings per share (EPS) of 79c, beating the consensus estimates of 72c. Net revenue came in at $670.6 million, down 8.4% year-over-year, and below the expected $676.1 million.

Semiconductor test revenue stood at $431 million, while analysts were looking for $436.6 million.

Adjusted net income was reported at $127 million, compared to the consensus projection of $116 million.

Teradyne reported $102.2 million in engineering and development expenses during the quarter, down 6.1% from a year-ago quarter, and below the forecasted $103.8 million.

"We closed out 2023 with Q4 revenue and profit in line with our guidance as strong demand for memory test systems and 50% quarterly growth of Robotics revenue offset weakening demand for System-on-a-Chip (SOC) test systems," said Teradyne CEO Greg Smith.

Going forward, the company expects adjusted Q1 EPS to be in the range of 22c to 38c, well below the estimated 54c. Revenue is expected to range between $540 million and $590 million, also short of the projected $624.3 million.

“Smartphone (Apple) weakness remains key n-t risk, hinging on iPhone unit performance (3nm transition). Overall, we maintain our Underperform rating and will review our model following the earnings call at 8:30 am ET tomorrow,” BofA analysts wrote in a note.

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