Northland Securities Expects Stronger Earnings for Teradyne

Key Points

• Northland Securities raised its Teradyne earnings outlook, forecasting Q3 2027 EPS of $2.83, up from $2.05, along with Q4 2027 EPS of $2.82 and full-year 2027 EPS of $10.55.
• Teradyne’s latest quarterly results exceeded expectations, with EPS of $2.29 versus the $2.09 consensus and revenue of $1.31 billion, up 69.8% year over year.
• Analyst sentiment remains broadly positive: 11 analysts rate the stock Buy and five rate it Hold, producing a “Moderate Buy” consensus rating and an average price target of $405.86.

Teradyne, Inc. (NASDAQ:TER - Free Report) - Stock analysts at Northland Securities boosted their Q3 2027 EPS estimates for Teradyne in a research note issued on Thursday, October 29th. Northland Securities analyst G. Richard now anticipates that the company will post earnings per share of $2.83 for the quarter, up from their previous forecast of $2.05. The consensus estimate for Teradyne's current full-year earnings is $9.36 per share. Northland Securities also issued estimates for Teradyne's Q4 2027 earnings at $2.82 EPS and FY2027 earnings at $10.55 EPS.

Other equities research analysts have also issued research reports about the stock. Cantor Fitzgerald restated an "overweight" rating and set a $550.00 price target on shares of Teradyne in a research note on Wednesday, July 29th. Wall Street Zen raised Teradyne from a "hold" rating to a "buy" rating in a report on Saturday, October 24th. Robert W. Baird lowered shares of Teradyne from an "outperform" rating to a "neutral" rating and set a $420.00 price target on the stock. in a research note on Friday, August 21st. Evercore reissued an "outperform" rating and set a $420.00 target price on shares of Teradyne in a report on Thursday, July 30th. Finally, Morgan Stanley upped their price objective on shares of Teradyne from $387.00 to $397.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. Eleven research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $405.86.

Teradyne Stock Performance

NASDAQ TER opened at $274.37 on Monday. The company has a market capitalization of $42.90 billion, a PE ratio of 31.50, a P/E/G ratio of 0.54 and a beta of 1.73. Teradyne has a 12 month low of $151.52 and a 12 month high of $487.91. The stock has a 50-day simple moving average of $364.20 and a 200 day simple moving average of $348.40.

Teradyne (NASDAQ:TER - Get Free Report) last posted its earnings results on Tuesday, October 27th. The company reported $2.29 EPS for the quarter, beating the consensus estimate of $2.09 by $0.20. Teradyne had a return on equity of 43.81% and a net margin of 27.46%. The firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same quarter in the prior year, the company posted $0.85 earnings per share. Teradyne's revenue for the quarter was up 69.8% compared to the same quarter last year.

Teradyne Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were issued a $0.13 dividend. The ex-dividend date was Friday, September 4th. This represents a $0.52 annualized dividend and a yield of 0.2%. Teradyne's dividend payout ratio (DPR) is presently 5.97%.

Insider Activity

In related news, CEO Gregory Smith sold 4,000 shares of the business's stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $341.28, for a total value of $1,365,120.00. Following the completion of the sale, the chief executive officer directly owned 104,495 shares in the company, valued at approximately $35,662,053.60. The trade was a 3.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 12,000 shares of company stock worth $4,416,440 in the last three months. Insiders own 0.19% of the company's stock.

Institutional Investors Weigh In On Teradyne

Several institutional investors and hedge funds have recently added to or reduced their stakes in TER. Covestor Ltd increased its holdings in Teradyne by 33.1% in the third quarter. Covestor Ltd now owns 209 shares of the company's stock worth $84,000 after purchasing an additional 52 shares in the last quarter. Rakuten Investment Management Inc. grew its stake in shares of Teradyne by 13.2% during the 3rd quarter. Rakuten Investment Management Inc. now owns 65,613 shares of the company's stock valued at $26,443,000 after acquiring an additional 7,676 shares during the period. Provenance Wealth Advisors LLC bought a new position in Teradyne during the third quarter valued at $181,000. Associated Banc Corp purchased a new position in Teradyne in the third quarter valued at about $216,000. Finally, Integrity Alliance LLC. grew its holdings in Teradyne by 81.5% during the third quarter. Integrity Alliance LLC. now owns 1,292 shares of the company's stock worth $518,000 after acquiring an additional 580 shares during the period. Hedge funds and other institutional investors own 99.77% of the company's stock.

Teradyne News Roundup

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne’s latest quarterly results showed strong momentum: revenue reached $1.31 billion, up nearly 70% year over year, while EPS of $2.29 exceeded the $2.09 consensus estimate. Management also highlighted expanding AI-compute programs, record memory-test revenue, and capacity investments supporting potential growth in 2027. Teradyne Q3 Earnings Call Highlights AI Demand and 2027 Growth Plans
• Positive Sentiment: Northland Securities raised its FY2026 EPS forecast to $9.40 from $9.34 and increased its Q2 2027 estimate to $2.63 from $2.50. Both forecasts are above the current full-year consensus estimate of $9.17, signaling expectations for continued earnings growth. Teradyne analyst estimate updates
• Positive Sentiment: UBS lowered its price target to $430 from $485 but retained a Buy rating. The revised target still implies substantial upside based on the referenced trading level, suggesting UBS views the long-term AI and automation opportunity as intact. UBS Teradyne price-target update

Teradyne Company Profile

Teradyne, Inc develops and supplies automated test equipment and industrial automation products. Its systems help manufacturers test the functionality, performance, and reliability of semiconductor devices, electronic systems, wireless products, and other complex products throughout the production process.

The company's product portfolio includes semiconductor test systems, memory and system-level test equipment, and solutions for printed circuit boards and electronic products. Teradyne also provides collaborative robots through Universal Robots and autonomous mobile robots through Mobile Industrial Robots (MiR), supporting applications such as assembly, material handling, machine tending, packaging, and warehouse logistics.

Founded in 1960 and headquartered in North Reading, Massachusetts, Teradyne serves customers worldwide, including semiconductor manufacturers, electronics producers, automotive companies, and industrial businesses.

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