A month has passed since Teradyne's last earnings report. In this article, we will closely examine their most recent financial performance, including revenues, segments, and projections for the future. Join me as we delve into the details of Teradyne's earnings report.
Teradyne's Third Quarter Earnings Report
A breakdown of Teradyne's financial performance in the third quarter of 2023.
Teradyne recently released its earnings report for the third quarter of 2023, providing valuable insights into the company's financial performance during this period.
The company reported earnings of 80 cents per share, surpassing the Zacks Consensus Estimate by 11.11%. However, this represents a decline of 30.4% compared to the previous year.
Revenues for the quarter were $704 million, exceeding the Zacks Consensus Estimate by 2.83%, but falling 14.9% year over year.
Let's dive deeper into the details of Teradyne's third quarter earnings report and explore the factors that contributed to these results.
Segment Performance and Revenue Breakdown
An analysis of Teradyne's different business segments and their contributions to overall revenue.
Teradyne operates in various segments, including Semiconductor Test platforms, System Test business, Wireless Test business, and Robotics.
In the third quarter, Semiconductor Test platforms accounted for $498 million (70.7% of total revenues), while System Test business contributed $83 million (11.8%).
Wireless Test business generated $37 million (5.3%), and Robotics brought in $86 million (12.2%).
Let's explore the performance of each segment in more detail and understand their impact on Teradyne's overall revenue.
Gross Margin and Expenses
An examination of Teradyne's gross margin and its expenses during the third quarter.
Teradyne's gross margin for the quarter was 56.6%, which contracted by 212 basis points (bps) compared to the previous year.
Selling and administrative expenses increased by 2% year over year to $138.3 million, representing 19.6% of revenues.
Engineering and Development expenses, as a percentage of revenues, increased by 130 basis points (bps) year over year to 14.8%.
Let's delve deeper into Teradyne's gross margin and expenses to gain a better understanding of their financial implications.
Cash and Cash Equivalents
An overview of Teradyne's cash and cash equivalents, including their change over time.
As of October 1, 2023, Teradyne had cash and cash equivalents totaling $716.5 million, slightly lower than the previous quarter.
Net cash provided by operating activities for the third quarter was $174.3 million, and the company returned $136 million to shareholders through share repurchases and dividends.
Let's explore Teradyne's cash and cash equivalents in more detail and understand their significance for the company's financial health.
Projections for the Fourth Quarter
Teradyne's revenue and earnings projections for the fourth quarter of 2023.
Teradyne expects revenues between $640 million and $700 million for the fourth quarter of 2023.
Non-GAAP earnings are projected to be between 58 cents and 78 cents per share.
Let's take a closer look at Teradyne's projections for the fourth quarter and analyze their potential impact on the company's future performance.
