Teradyne Forecasts Strong Q4 Results Amid Rising Demand for AI Chip-Testing Equipment
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Teradyne Forecasts Strong Q4 Results on Steady Chip-Testing Demand
(Reuters) - Teradyne forecast fourth-quarter profit and revenue above Wall Street estimates on Wednesday, owing to accelerated demand for its semiconductor-testing equipment, sending its shares up 2.5% in extended trading. Growing demand from memory chips and cloud compute firms that offer AI capabilities is benefiting Teradyne, as the chip-testing technology provider helps ensure the performance of semiconductors, electronic systems and wireless devices. The company forecast fourth-quarter revenue of $710 million to $760 million, with the mid-point above analysts' average estimate of $736.5 million, according to data compiled by LSEG. Teradyne forecast adjusted earnings per share for the fourth quarter in the range of 80 cents to 97 cents, compared with estimates of 88 cents. The company, which counts Qualcomm and Texas Instruments among its customers, designs and develops technology to test chips and electronic equipment. It also sells robotic systems to customers in the manufacturing sector. The company's revenue for the third quarter rose about 5% to $737 million from a year ago, compared with estimates of $716.4 million. On an adjusted basis, the company earned 90 cents per share in the quarter ended Sept. 29, compared with estimates of 78 cents per share. (Reporting by Priyanka.G in Bengaluru; editing by Alan Barona)
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Teradyne forecasts strong Q4 results on steady chip-testing demand
Oct 23 (Reuters) - Teradyne (TER.O), opens new tab forecast fourth-quarter profit and revenue above Wall Street estimates on Wednesday, owing to accelerated demand for its semiconductor-testing equipment, sending its shares up 2.5% in extended trading. Growing demand from memory chips and cloud compute firms that offer AI capabilities is benefiting Teradyne, as the chip-testing technology provider helps ensure the performance of semiconductors, electronic systems and wireless devices. Advertisement · Scroll to continue The company forecast fourth-quarter revenue of $710 million to $760 million, with the mid-point above analysts' average estimate of $736.5 million, according to data compiled by LSEG. Teradyne forecast adjusted earnings per share for the fourth quarter in the range of 80 cents to 97 cents, compared with estimates of 88 cents. The company, which counts Qualcomm (QCOM.O), opens new tab and Texas Instruments (TXN.O), opens new tab among its customers, designs and develops technology to test chips and electronic equipment. It also sells robotic systems to customers in the manufacturing sector. Advertisement · Scroll to continue The company's revenue for the third quarter rose about 5% to $737 million from a year ago, compared with estimates of $716.4 million. On an adjusted basis, the company earned 90 cents per share in the quarter ended Sept. 29, compared with estimates of 78 cents per share. Reporting by Priyanka.G in Bengaluru; editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab
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Teradyne, a leading semiconductor-testing equipment provider, predicts better-than-expected Q4 results due to increased demand from AI and cloud computing sectors. The company's Q3 performance also surpassed analyst estimates.
Teradyne's Strong Q4 Forecast
Teradyne, a leading provider of semiconductor-testing equipment, has forecasted better-than-expected fourth-quarter results, driven by accelerated demand for its products. The company's shares rose 2.5% in extended trading following the announcement 12.
For the fourth quarter, Teradyne projects revenue between $710 million and $760 million, with the midpoint surpassing analysts' average estimate of $736.5 million. The company also anticipates adjusted earnings per share in the range of 80 cents to 97 cents, compared to the analyst consensus of 88 cents 12.
AI and Cloud Computing Boost Demand
The strong forecast is attributed to growing demand from memory chip manufacturers and cloud computing firms offering AI capabilities. Teradyne's chip-testing technology plays a crucial role in ensuring the performance of semiconductors, electronic systems, and wireless devices, making it a beneficiary of the AI boom 12.
Q3 Performance Exceeds Expectations
Teradyne's third-quarter results also surpassed analyst estimates:
- Revenue: $737 million, up 5% year-over-year (vs. $716.4 million estimated)
- Adjusted earnings per share: 90 cents (vs. 78 cents estimated) 12
Company Profile and Customer Base
Teradyne designs and develops technology for testing chips and electronic equipment. The company's customer base includes industry giants such as Qualcomm and Texas Instruments. In addition to its semiconductor-testing business, Teradyne also provides robotic systems to customers in the manufacturing sector 12.
Market Implications
The positive forecast from Teradyne suggests a robust demand for semiconductor-testing equipment, particularly in the AI and cloud computing sectors. This trend could indicate continued growth in these technology areas and potentially signal strong performance for other companies in the semiconductor and AI supply chains 12.
As the AI industry continues to expand, companies like Teradyne that provide critical testing and quality assurance technologies are likely to see increased demand for their products and services. This growth in the AI chip-testing market underscores the importance of ensuring the reliability and performance of AI-related hardware as the technology becomes more prevalent across various industries.
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