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Teradyne, Inc. (TER), headquartered in North Reading, Massachusetts, is a leading global semiconductor company that designs, manufactures, and markets automated test systems and robotics products. Valued at $14.7 billion by market cap, the company's test equipment products and services include, semiconductor test systems, military, aerospace test instrumentation, circuit-board test, inspection systems, automotive diagnostic, and test systems. The leading supplier of automated test solutions is expected to announce its fiscal second-quarter earnings for 2025 on Wednesday, Jul. 23.
Ahead of the event, analysts expect TER to report a profit of $0.54 per share on a diluted basis, down 37.2% from $0.86 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last three quarterly reports.
For the full year, analysts expect TER to report EPS of $3.16, down 1.9% from $3.22 in fiscal 2024. However, its EPS is expected to rise 36.7% year over year to $4.32 in fiscal 2026.
TER stock has considerably underperformed the S&P 500 Index’s ($SPX) 13% gains over the past 52 weeks, with shares down 37.1% during this period. Similarly, it significantly underperformed the Technology Select Sector SPDR Fund’s (XLK) 10.7% gains over the same time frame.
TER's underperformance is largely due to slowing demand, driven by reducing capital expenditures amid the ongoing impact of tariffs.
On Apr. 28, TER shares closed down marginally after reporting its Q1 results. Its adjusted EPS of $0.75 beat Wall Street expectations of $0.61. The company’s revenue was $685.7 million, topping Wall Street forecasts of $683.9 million. For Q2, Teradyne expects its adjusted EPS to range from $0.41 to $0.64, and expects revenue in the range of $610 million to $680 million.
Analysts’ consensus opinion on TER stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 15 analysts covering the stock, nine advise a “Strong Buy” rating, one suggests a “Moderate Buy,” three give a “Hold,” one recommends a “Moderate Sell,” and one advocates a “Strong Sell.” TER’s average analyst price target is $97.93, indicating a potential upside of 4% from the current levels.
