Teradyne Earnings: Despite Strong Report, Missed Expectations

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S&P 500 (NYSE:SPY) component Teradyne Inc. (NYSE:TER) reported higher profit for the third quarter as revenue showed growth. Teradyne develops, designs, manufactures and sells automatic test systems and solutions used to test complex electronics.

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Teradyne Inc. Earnings Cheat Sheet

Results: Net income for Teradyne Inc. rose to $88.6 million (39 cents per share) vs. $56.7 million (25 cents per share) in the same quarter a year earlier. This marks a rise of 56.3% from the year-earlier quarter.

Revenue: Rose 34.6% to $463.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Teradyne Inc. fell short of the mean analyst estimate of 45 cents per share. It fell short of the average revenue estimate of $510.9 million.

Quoting Management: “We delivered sales and earnings above our forecast in the third quarter driven by strong demand in the mobility market for both Semiconductor Test and LitePoint products,” said Mike Bradley, President and CEO. “While the seasonal slowdown in new orders was amplified by worldwide economic concerns, we are on track to deliver full year revenue growth of 15% or more in 2012.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 19 cents, and in the first quarter, it was ahead by 2 cents.

Revenue has now gone up in each of the last three quarters. In the second quarter, revenue rose 33.6% to $548.3 million while the figure rose 5.2% in the first quarter from the year earlier.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 43 cents per share to 23 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from $1.84 a share to $1.73 over the last ninety days.

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

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