Teradyne Gears Up to Report Q1 Earnings: What's in the Offing?

Teradyne TER is scheduled to report its first-quarter 2025 earnings results on April 28.

For the first quarter of 2025, TER expects revenues between $660 million and $700 million. The company anticipates non-GAAP earnings between 58 cents and 68 cents per share.

The Zacks Consensus Estimate for revenues is pegged at $683.90 million, indicating an increase of 14.02% from the year-ago quarter’s reported value.

The consensus mark for first-quarter earnings is pegged at 61 cents per share, unchanged over the past 30 days. This projection indicates an increase of 19.61% from the prior-year reported figure.

Teradyne, Inc. Price and EPS Surprise

 

Teradyne, Inc. price-eps-surprise | Teradyne, Inc. Quote

Teradyne earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 22.16%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Let us see how things have shaped up for the upcoming announcement.

Factors to Note Ahead of TER’s Q1 Results

TER’s first-quarter 2025 performance is likely to have been impacted by continued weakness in the industrial automation market. This headwind is anticipated to have hurt the company in the quarter under review.

The company expects the memory test market to remain flat in 2025 as customers continue to absorb capacity through more productive tools. This ongoing softness in demand is expected to have affected TER’s first-quarter 2025 performance.

TER encountered continued weakness in its wireless test business as revenues declined due to a slower-than-anticipated rollout of WiFI 7 technology. This underperformance is likely to have persisted in the first quarter and adversely impacted its performance for the period under review.

Despite these challenges, Teradyne benefits from robust demand in semiconductor testing and the strength of its strategic partnerships. Its collaboration with Infineon IFNNY is expected to accelerate progress in the power semiconductor space. The Infineon partnership, along with growth in SoC and memory test revenues, driven by AI accelerator ASICs, networking and HBM DRAM, is likely to have contributed positively to the company’s performance in the to-be-reported quarter.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Teradyne currently has an Earnings ESP of +2.52% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

StoneCo STNE presently has an Earnings ESP of +13.79% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

STNE is scheduled to release its first-quarter 2025 results on May 08. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 29 cents per share, suggesting no change from the year-ago reported figure.

Qorvo QRVO currently has an Earnings ESP of +3.42% and a Zacks Rank #2.

QRVO is set to report its fourth-quarter fiscal 2025 results on April 29. The Zacks Consensus Estimate for fourth-quarter fiscal 2025 earnings is pegged at $1.01 per share. The consensus estimate indicates a year-over-year decline of 27.34%.

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This article originally published on Zacks Investment Research (zacks.com).

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