Teradyne Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Teradyne, Inc. (NYSE:TER) will unveil its latest earnings on Wednesday, October 26, 2011. 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 net income of 23 cents per share, a decline of 72% 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 44 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 23 cents during the last month. Analysts are projecting profit to rise by 43.2% versus last year to $1.25.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 9 cents, reporting profit of 50 cents per share against a mean estimate of net income of 41 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $326.9 million in revenue this quarter, a decline of 34.9% from the year ago quarter. Analysts are forecasting total revenue of $1.4 billion for the year, a decline of 13% 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 89.3% buy ratings.

A Look Back: In the second quarter, profit fell 27.1% to $89.1 million (39 cents a share) from $122.1 million (55 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 9.7% to $410.5 million from $454.8 million.

Key Stats:

A year-over-year revenue decrease in the second quarter snapped a streak of three consecutive quarters of revenue increases. Revenue rose 14.4%in the first quarter, 20.6% in the fourth quarter of the last fiscal year and 91.5% in the third quarter of the last fiscal year.

The decrease in profit in the second quarter broke a streak of three consecutive quarters of year-over-year profit increases. Net income rose 89.4% in the first quarter, more than threefold in the fourth quarter of the last fiscal year and 2107.3% in the third quarter of the last fiscal year.

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 September 22, 2011 to October 20, 2011, the stock price had risen $2.12 (18.9%) from $11.23 to $13.35. The stock price saw one of its best stretches over the last year between January 28, 2011 and February 8, 2011 when shares rose for eight-straight days, rising 10.8% (+$1.76) over that span. It saw one of its worst periods between May 31, 2011 and June 8, 2011 when shares fell for seven-straight days, falling 9.3% (-$1.49) over that span. Shares are down 69 cents (-4.9%) year to date.

(Source: Xignite Financials)

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