2 Stocks Trading in Different Directions Following Earnings Releases

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Teradyne Inc. (NYSE:TER) reported net income above Wall Street’s expectations for the fourth quarter. Net income for the semiconductor equipment and materials company rose to $125.1 million (56 cents per share) vs. $60.1 million (27 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter. Revenue fell 4.2% to $297 million from the year earlier quarter. TER reported adjusted net income of 16 cents per share. By that measure, the company beat the mean estimate of 11 cents per share. It beat the average revenue estimate of $284.8 million.

“We saw an upturn in customer orders in our System-on-a-Chip (SOC) business and in all lines of our Systems Test Group in the fourth quarter,” said Mike Bradley, President and CEO. “The new order increase was driven by very strong demand for leading-edge semiconductor testers for new mobile products and by a broadened storage test customer base. As a result, we’re increasing our first quarter revenue guidance. We closed 2011 with very solid operating results in both Semiconductor Test and Systems Test and we added an exciting growth engine late in the year with the acquisition of LitePoint.”

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).

Allegheny Technologies Incorporated (NYSE:ATI) reported higher profit for the fourth quarter as revenue showed growth. Net income for the industrial metals and minerals company rose to $31.7 million (29 cents per share) vs. $15.1 million (15 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter. Revenue rose 20.6% to $1.25 billion from the year earlier quarter. ATI reported adjusted net income of 31 cents per share. By that measure, the company fell short of mean estimate of 54 cents per share. It fell short of the average revenue estimate of $1.31 billion.

“Our 2011 results continued to demonstrate the benefits of ATI’s recent strategic investments and our focus on key global markets and high-value differentiated products,” said Rich Harshman, Chairman, President and Chief Executive Officer. “Sales for 2011 were 28% higher than in 2010. Segment operating profit, excluding inventory fair value adjustments associated with the Ladish acquisition, was 12.3% of ATI sales, or $639.3 million. This performance represents a 79% increase over 2010 segment operating profit. Earnings per share before special charges was $2.23, 210% higher than 2010.”

Competitors to Watch: RTI Intl. Metals, Inc. (NYSE:RTI), China Direct Industries, Inc. (NASDAQ:CDII), Titanium Metals Corp. (NYSE:TIE), AK Steel Holding Corp. (NYSE:AKS), Precision Castparts Corp. (NYSE:PCP), ArcelorMittal (NYSE:MT), Schnitzer Steel (NASDAQ:SCHN), Steel Dynamics (NASDAQ:STLD) and Nucor (NYSE:NUE).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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