Teradyne Beats on Both Top and Bottom Lines

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Teradyne (NYS: TER) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 1 (Q1), Teradyne beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped significantly.


Margins dropped across the board.

Revenue details
Teradyne booked revenue of $396.7 million. The 12 analysts polled by S&P Capital IQ hoped for revenue of $382.3 million on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $377.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.30. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.28 per share on the same basis. GAAP EPS of $0.15 for Q1 were 63% lower than the prior-year quarter's $0.41 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 48.1%, 290 basis points worse than the prior-year quarter. Operating margin was 11.2%, 970 basis points worse than the prior-year quarter. Net margin was 8.5%, 1,670 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $412.8 million. On the bottom line, the average EPS estimate is $0.38.

Next year's average estimate for revenue is $1.65 billion. The average EPS estimate is $1.53.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 286 members rating the stock outperform and 26 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give Teradyne a green thumbs-up, and four 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 $19.73.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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