Teradyne Shares Tumble as Q3 Revenue Forecast Falls Short Amid Weak Demand
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On Thu, 25 Jul, 8:01 AM UTC
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Teradyne forecasts quarterly revenue below estimates on weak demand; shares fall
July 24 (Reuters) - Teradyne forecast third-quarter revenue below Wall Street estimates on Wednesday, signaling sluggish demand for its semiconductor-testing equipment and sending its shares down more than 7% in extended trading. Demand for the company's products from certain markets such as the automobile sector has remained soft, as customers are grappling with excess inventory due to a long slump stemming from stockpiling during the pandemic. Teradyne designs and develops technology to test chips and electronic equipment and sells robotic systems to customers in the manufacturing sector. The company, which counts Qualcomm and Texas Instruments among its customers, forecast third-quarter revenue of $680 million to $740 million, with the mid-point below analysts' average estimate of $717.7 million, according to LSEG data. North Reading, Massachusetts-based Teradyne forecast adjusted earnings per share for the third quarter in the range of 66 cents to 86 cents, compared with estimates of 86 cents. The company's revenue for the second quarter rose about 7% to $730 million from a year ago, compared with estimates of $701.2 million. "In the second quarter, AI applications drove accelerated demand from both compute and memory customers, and our robotics business grew sequentially and year-over-year," CEO Greg Smith said in a statement. On an adjusted basis, the company earned 86 cents per share in the quarter ended June 30, compared with estimates of 77 cents per share. (Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed Safi Shamsi)
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Teradyne Forecasts Quarterly Revenue Below Estimates on Weak Demand; Shares Fall
(Reuters) - Teradyne forecast third-quarter revenue below Wall Street estimates on Wednesday, signaling sluggish demand for its semiconductor-testing equipment and sending its shares down more than 7% in extended trading. Demand for the company's products from certain markets such as the automobile sector has remained soft, as customers are grappling with excess inventory due to a long slump stemming from stockpiling during the pandemic. Teradyne designs and develops technology to test chips and electronic equipment and sells robotic systems to customers in the manufacturing sector. The company, which counts Qualcomm and Texas Instruments among its customers, forecast third-quarter revenue of $680 million to $740 million, with the mid-point below analysts' average estimate of $717.7 million, according to LSEG data. North Reading, Massachusetts-based Teradyne forecast adjusted earnings per share for the third quarter in the range of 66 cents to 86 cents, compared with estimates of 86 cents. The company's revenue for the second quarter rose about 7% to $730 million from a year ago, compared with estimates of $701.2 million. "In the second quarter, AI applications drove accelerated demand from both compute and memory customers, and our robotics business grew sequentially and year-over-year," CEO Greg Smith said in a statement. On an adjusted basis, the company earned 86 cents per share in the quarter ended June 30, compared with estimates of 77 cents per share. (Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed Safi Shamsi)
[3]
Teradyne forecasts quarterly revenue below estimates on weak demand; shares fall - ET Telecom
Teradyne forecast third-quarter revenue below Wall Street estimates on Wednesday, signaling sluggish demand for its semiconductor-testing equipment and sending its shares down more than 7% in extended trading. Demand for the company's products from certain markets such as the automobile sector has remained soft, as customers are grappling with excess inventory due to a long slump stemming from stockpiling during the pandemic. Teradyne designs and develops technology to test chips and electronic equipment and sells robotic systems to customers in the manufacturing sector. The company, which counts Qualcomm and Texas Instruments among its customers, forecast third-quarter revenue of $680 million to $740 million, with the mid-point below analysts' average estimate of $717.7 million, according to LSEG data. North Reading, Massachusetts-based Teradyne forecast adjusted earnings per share for the third quarter in the range of 66 cents to 86 cents, compared with estimates of 86 cents. The company's revenue for the second quarter rose about 7% to $730 million from a year ago, compared with estimates of $701.2 million. "In the second quarter, AI applications drove accelerated demand from both compute and memory customers, and our robotics business grew sequentially and year-over-year," CEO Greg Smith said in a statement. On an adjusted basis, the company earned 86 cents per share in the quarter ended June 30, compared with estimates of 77 cents per share.
[4]
Teradyne forecasts quarterly revenue below estimates on weak demand; shares fall
Teradyne designs and develops technology to test chips and electronic equipment and sells robotic systems to customers in the manufacturing sector. The company, which counts Qualcomm and Texas Instruments among its customers, forecast third-quarter revenue of $680 million to $740 million, with the mid-point below analysts' average estimate of $717.7 million, according to LSEG data. North Reading, Massachusetts-based Teradyne forecast adjusted earnings per share for the third quarter in the range of 66 cents to 86 cents, compared with estimates of 86 cents. The company's revenue for the second quarter rose about 7% to $730 million from a year ago, compared with estimates of $701.2 million. "In the second quarter, AI applications drove accelerated demand from both compute and memory customers, and our robotics business grew sequentially and year-over-year," CEO Greg Smith said in a statement. On an adjusted basis, the company earned 86 cents per share in the quarter ended June 30, compared with estimates of 77 cents per share. (Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed Safi Shamsi)
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Teradyne Inc., a leading semiconductor test equipment supplier, forecasts lower-than-expected Q3 revenue due to weak demand. The company's shares fall in after-hours trading as the industry faces challenges.
Teradyne's Q3 Revenue Forecast Disappoints
Teradyne Inc., a prominent player in the semiconductor test equipment industry, has released a disappointing third-quarter revenue forecast, causing its shares to plummet in after-hours trading. The company expects revenue between $670 million and $730 million for the quarter ending October 1, falling short of analysts' average estimate of $777.3 million 1.
Weak Demand and Industry Challenges
The lower-than-expected forecast is primarily attributed to weak demand in the semiconductor industry. Teradyne, which supplies test equipment to chip companies and electronics manufacturers, is facing headwinds as the broader tech sector grapples with economic uncertainties and shifting consumer spending patterns 2.
Q2 Performance and Share Price Impact
For the second quarter ended July 2, Teradyne reported revenue of $684 million, slightly surpassing analysts' expectations of $682.2 million. However, the company's shares fell 4% in extended trading following the release of the Q3 forecast 3.
Industry-wide Slowdown
Teradyne's situation reflects a broader slowdown in the semiconductor industry. Many chip companies have been struggling with excess inventory and reduced demand for electronics post-pandemic. This has led to a decrease in orders for semiconductor test equipment, directly impacting Teradyne's business 4.
Outlook and Challenges
The company faces challenges in navigating the current market conditions. With the semiconductor industry experiencing a cyclical downturn, Teradyne must adapt to reduced demand for its test equipment. The lower revenue forecast suggests that the recovery in the chip sector may take longer than initially anticipated, potentially affecting Teradyne's performance in the coming quarters.
Implications for the Tech Sector
Teradyne's forecast serves as a barometer for the broader technology sector, particularly the semiconductor industry. As a key supplier of test equipment, the company's performance often reflects the health of the chip market. The weak outlook may signal continued challenges for chip manufacturers and related businesses in the near term.
Investor Reactions
The market's immediate reaction to Teradyne's forecast was negative, as evidenced by the drop in share price during after-hours trading. Investors are likely to closely monitor the company's performance and any signs of improvement in demand for semiconductor test equipment in the coming months.
Reference
[2]
U.S. News & World Report
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