Teradyne Inc. Fourth Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Teradyne, Inc. (NYSE:TER) will unveil its latest earnings on Wednesday, January 25, 2012. Teradyne develops, designs, manufactures and sells automatic test systems and solutions used to test complex electronics.

Teradyne, Inc. Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 11 cents per share, a decline of 70.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 17 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 11 cents during the last month. For the year, analysts are projecting net income of $1.33 per share, a decline of 39.5% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 11 cents, reporting profit of 34 cents per share against a mean estimate of net income of 23 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $284.8 million in revenue this quarter, a decline of 11.6% from the year ago quarter. Analysts are forecasting total revenue of $1.42 billion for the year, a decline of 11.8% from last year’s revenue of $1.61 billion.

Analyst Ratings: six out of 11 analysts surveyed (54.5%) have a buy rating on Teradyne.. This is below the mean analyst rating of 10 competitors, which average 87.1% buy ratings.

A Look Back: In the third quarter, profit fell 62.8% to $54.7 million (25 cents a share) from $147.3 million (66 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 31.4% to $344.4 million from $502.1 million.

Key Stats:

The company has seen net income fall in each of the last two quarters. Net income dropped 27.1% in the second quarter.

Revenue has fallen in the past two quarters. In the second quarter, the figure fell 9.7%.

Competitors to Watch: LTX-Credence Corporation (NASDAQ:LTXC), Verigy Ltd. (NASDAQ:VRGY), Advantest Corp. (NYSE:ATE), Aehr Test Systems (NASDAQ:AEHR), Nanometrics Incorporated (NASDAQ:NANO), Agilent Technologies Inc. (NYSE:A), Aetrium, Inc. (NASDAQ:ATRM), Cohu, Inc. (NASDAQ:COHU), Rudolph Technologies, Inc. (NASDAQ:RTEC), and inTEST Corporation (NASDAQ:INTT).

Stock Price Performance: During December 19, 2011 to January 19, 2012, the stock price had risen $3.31 (25.8%) from $12.81 to $16.12. The stock price saw one of its best stretches over the last year between December 28, 2011 and January 11, 2012 when shares rose for 10-straight days, rising 14.1% (+$1.87) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight-straight days, falling 19.7% (-$2.87) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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