Markets
TER

Here's Why Teradyne Shares Jumped on Wednesday

What happened

Shares of Teradyne (NASDAQ: TER) gained 7.6% on Wednesday, after the electronics testing equipment manufacturer reported earnings that came in ahead of expectations. It's the second straight quarter of outperformance for the company, continuing a great start to 2019.

So what

Teradyne reported first-quarter earnings of $0.54 per share on revenue of $494 million, surpassing analyst consensus estimates of $0.44 per share in earnings on revenue of $476.15 million. The company, a maker of semiconductor test equipment as well as equipment for wireless products and other peripherals, said results came in above guidance because test shipments were slightly better than expected and included robust demand for higher-margin products.

A hand draws a stock chart pointing higher.

Image source: Getty Images.

This is the second straight earnings beat for Teradyne, after easily surpassing analyst expectations in the fourth quarter of 2018. The shares have been a top performer so far in 2019, up 52.9% year to date.

The company also in the quarter acquired Lemsys of Switzerland for an undisclosed sum to augment its portfolio of test equipment for the semiconductor industry.

Now what

Teradyne management expects second quarter earnings of $0.56 to $0.65 per share on revenue of $520 million to $550 million, meaning results could come in ahead of current analyst expectations for earnings of $0.58 per share on revenue of $538.61 million. But the company's outlook for the full year remains "essentially unchanged," CEO Mark Jagiela said in a statement.

Given how far the shares have climbed already in 2019, it's probably best for management to try to temper expectations for the quarters to come.

10 stocks we like better than Teradyne
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Teradyne wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of March 1, 2019

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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

In This Story

TER

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More