Teradyne TER is scheduled to report its first-quarter 2023 results on Apr 26.
For the first quarter, TER expects revenues between $550 million and $630 million. The Zacks Consensus Estimate for sales is pegged at $591.5 million, indicating a decline of 21.7% from the year-ago quarter’s reported value.
Teradyne anticipates non-GAAP earnings per share between 28 cents and 52 cents. The consensus mark for earnings is pegged at 42 cents, indicating a 57.1% fall from the previous-year quarter’s reported figure.
TER’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 13.4%.
Teradyne, Inc. Price and EPS Surprise
Key Factors to Note
Strong momentum in the automotive and industrial end markets is likely to have benefited Teradyne’s first-quarter performance.
Strength in the ADAS processors and the Eagle platform is likely to have benefited the business in the to-be-reported quarter.
Apart from these, rising semiconductor content for electric vehicles, autonomous driving, and auto infotainment are likely to have contributed to the System Test business performance in the first quarter.
Further, well-performing Universal Robots and Mobile Industrial Robots is expected to have benefited the Industrial Automation business of the company in the to-be-reported quarter.
Strengthening demand for Universal Robots’ UR20 and its steady momentum in the OEM channel are likely to have been positives.
However, weakness in Teradyne’s Wireless Test business is expected to have impacted its quarterly performance negatively. Sluggish smartphone and PC end-markets might have posed concerns.
Further, weakness in Storage Test due to excess capacity in the HDD (Hard Disk Drive) end market is expected to have been a headwind for the first quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Teradyne this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But, that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Teradyne has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
Stocks to Consider
Here are some stocks worth considering as our model shows that these have the right combination of elements to beat on earnings this season.
DigitalOcean DOCN has an Earnings ESP of +11.93% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DOCN is scheduled to release first-quarter 2023 results on May 9. The Zacks Consensus Estimate for DOCN’s earnings is pegged at 28 cents per share, suggesting a jump from 7 cents per share reported in the prior-year quarter.
BILL Holdings, Inc. BILL has an Earnings ESP of +1.89% and a Zacks Rank #3 at present.
BILL Holdings is set to report third-quarter fiscal 2023 results on May 4. The Zacks Consensus Estimate for BILL’s earnings is pegged at 24 cents per share. The company reported a loss of 8 cents per share in the year-ago quarter.
Ceridian HCM CDAY has an Earnings ESP of +9.09% and a Zacks Rank #3 at present.
CDAY is scheduled to report first-quarter 2023 results on May 3. The Zacks Consensus Estimate for CDAY’s earnings is pegged at 33 cents per share, suggesting an increase of 153.8% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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