Teradyne Q4 profit forecast signals sequential slowdown as quarterly margins narrow

Overview

• Automated test equipment maker's Q3 revenue rose 70% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company attributes growth to AI-driven demand in Memory and Integrated Systems Test

Outlook

• Teradyne sees Q4 revenue between $1.25 bln and $1.35 bln

• Company expects Q4 non-GAAP EPS of $1.95 to $2.25

• Company says it enters 2027 with a more diversified business and expanding opportunities

Result Drivers

• ROBOTICS GROWTH - Robotics segment posted its highest Q3 revenue and reached profitability

• BROAD AI VALUE CHAIN - Co said demand extended across memory, hard disk drive test, high-speed interconnect and robotics

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"

• Wall Street's median 12-month price target for Teradyne, Inc. is $420.00, about 35.9% above its October 26 closing price of $309.00

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 56 three months ago

Reuters Recommended Reads

• Oct 27 - Netherlands' ASM International Q3 revenue jumps on strong growth in memory sales

• Oct 27 - Netherlands' NXP Semiconductors Q3 revenue rises 19%, slightly beats estimates

• Oct 27 - Seagate Technology Q1 revenue and adjusted EPS beat estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)