Will Teradyne (TER) Disappoint This Earnings Season? - Analyst Blog

By
A A A

Teradyne Inc. ( TER ) is set to report third-quarter 2013 results on Oct 23. Last quarter, it posted a 30.0% positive surprise. Let's see how things are shaping up for this announcement.

Growth Factors this Past Quarter

The company's earnings exceeded the Zacks Consensus Estimate driven by lean cost structure and strong execution. Also, revenues of $428.9 million were up 53.0% sequentially attributable to new products. Gross margins expanded sequentially due to higher volumes and favorable mix.

For the third quarter, Teradyneexpects to generate revenues in the range of $425 million-$465 million, up 3.7% sequentially at the mid-point. Non-GAAP earnings are expected to be in the range of 39 cents-49 cents while GAAP earnings are expected within the range of 23 cents to 31 cents per share.

Earnings Whispers?

Our proven model does not conclusively show that Teradyneis likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Zacks ESP:   The earnings ESP for the stock is 0.00%.

Zacks Rank #4 (Sell): We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:  

Melco Crown Entertainment Limited ( MPEL ), with Earnings ESP of +6.45% and a Zacks Rank #1 (Strong Buy).

Kemper Corporation ( KMPR ), with Earnings ESP of +39.54% and a Zacks Rank #1 (Strong Buy).

SY Bancorp Inc. ( SYBT ), with Earnings ESP of +4.08% and a Zacks Rank #1 (Strong Buy).



KEMPER CORP (KMPR): Free Stock Analysis Report

MELCO CROWN ENT (MPEL): Free Stock Analysis Report

S Y BANCORP INC (SYBT): Free Stock Analysis Report

TERADYNE INC (TER): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: KMPR , MPEL , SYBT , TER

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

55,414,702
  • $15.38 ▼ 0.39%
38,503,210
  • $66.34 ▲ 2.26%
36,466,704
  • $8.36 ▼ 9.52%
35,253,294
  • $26.55 ▲ 1.34%
32,752,347
  • $6.55 ▲ 1.87%
31,778,001
  • $95.22 ▲ 0.19%
28,396,556
  • $51.49 ▼ 0.62%
23,800,987
  • $42.09 ▲ 0.97%
As of 7/11/2014, 04:03 PM