Teradyne Reports Better Than Expected Q4 Results

Teradyne (NASDAQ:TER) reported its Q4 results, with EPS of $0.92 coming in better than the Street estimate of $0.75. Revenue was $732 million, beating the Street estimate of $711.84 million.

For fiscal 2023, the company expects SoC Test market to be down 10-30% year-over-year, with weakness across all end markets, including auto and industrial. Also interesting is that the company is only expecting a modest increase in revenue from Apple and that the tester purchases from Apple are likely to be later in the year.

Analysts at Deutsche Bank raised their price target on the company’s shares to $95 from $85 while maintaining their Hold rating. The analysts lowered their 2023 revenue/EPS estimates from $3.2 billion/$4.00 to $2.8 billion/$3.00. Although the analysts lowered their 2024 EPS estimate by approximately 15%, given management's conviction of accelerated growth beyond 2023, they raised their target multiple which leads to an increase in their price target.