Teradyne, Inc. (NYSE:TER) has a strong second quarter


Dallas, Texas 10/02/2013 (Financialstrend) – Teradyne, Inc. (NYSE:TER) is one of the leading automatic equipment testing provider and operations spread across the globe. It operates in the semiconductor, systems testing and wireless equipment testing categories. It has a market cap of close to $3.15 billion and is tracked on the S&P 500 index.

Clocks 53% growth in Q2

At the end of its second quarter, TER reported revenue of $429 million. These earnings came from Semiconductor testing vertical: $293 million; wireless testing: $99 million and in Systems Testing $37 million.  For non-GAAP basis, the net income reads $89.1 million, translating to $0.43 every diluted share.

Q3 looks promising

According to CEO, Mike Bradley, “Semiconductor Test orders grew 40% in the quarter driven by the mobile, power management, microcontroller, and memory test sectors.”The CEO also commented that, the number of Wireless as well as Systems Test orders showed a decline in the quarter.He attributed this to clients need to match “capacity to market demand.” Considering the trend in orders it currently holds, TER has “raised”its third quarter revenue outlook to reflect these order trends.”

The revenue guidance for Q3 indicates revenues to range between $425 to $465 million, while the non-GAAP outlook is expected to be around $0.39 to $0.49 per share and GAAP to be in the range of $0.23 to $0.31 per diluted share.

TER performs as per expectations

As of close of business on October 1, the stock had settled at $16.53 per share. At current valuations, it was up marginally compared to its previous day close.  Over the past one month the share had gained by 7.6%. On October 1, a total of 1.9 million shares of TER changed hands as against a daily average of 2.3 million shares. Current pricing is 11.7% below its 52 week high valuation and is 23% above its 52 week low pricing. It has close to 190 million shares outstanding.

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