Teradyne (NASDAQ:TER) Issues Q3 2025 Earnings Guidance

Key Points

• Teradyne has provided Q3 2025 earnings guidance with an EPS range of $0.690-$0.870, lower than the consensus estimate of $0.890, and revenue guidance between $710.0 million and $770.0 million, below the expected $757.6 million.
• The company recently declared a quarterly dividend of $0.12 per share, with an annualized rate of $0.48, representing a dividend yield of 0.53% and a payout ratio of 13.56%.
• A share buyback program has been approved, allowing Teradyne to repurchase up to $1.00 billion in shares, indicating management's belief that the stock is undervalued.

Teradyne (NASDAQ:TER - Get Free Report) issued an update on its third quarter 2025 earnings guidance on Tuesday morning. The company provided EPS guidance of 0.690-0.870 for the period, compared to the consensus EPS estimate of 0.890. The company issued revenue guidance of $710.0 million-$770.0 million, compared to the consensus revenue estimate of $757.6 million.

Teradyne Trading Down 0.6%

Shares of NASDAQ:TER traded down $0.59 during midday trading on Tuesday, reaching $90.55. 6,682,914 shares of the company were exchanged, compared to its average volume of 3,315,260. The stock has a market cap of $14.53 billion, a PE ratio of 25.58, a price-to-earnings-growth ratio of 3.99 and a beta of 1.70. The business's fifty day moving average is $87.83 and its two-hundred day moving average is $93.39. Teradyne has a one year low of $65.77 and a one year high of $144.16.

Teradyne (NASDAQ:TER - Get Free Report) last issued its earnings results on Tuesday, July 29th. The company reported $0.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.54 by $0.03. Teradyne had a net margin of 19.86% and a return on equity of 20.06%. As a group, sell-side analysts expect that Teradyne will post 3.88 EPS for the current year.

Teradyne Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 13th. Stockholders of record on Thursday, May 22nd were paid a dividend of $0.12 per share. The ex-dividend date of this dividend was Thursday, May 22nd. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.53%. Teradyne's payout ratio is 13.56%.

Teradyne announced that its board has approved a share buyback program on Monday, April 28th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the company to buy up to 8.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on TER shares. Susquehanna cut their price target on Teradyne from $155.00 to $133.00 and set a "positive" rating for the company in a report on Wednesday, April 30th. JPMorgan Chase & Co. reaffirmed a "neutral" rating and issued a $102.00 target price (up from $88.00) on shares of Teradyne in a research report on Thursday, July 17th. KeyCorp reiterated a "sector weight" rating on shares of Teradyne in a research report on Thursday, April 17th. The Goldman Sachs Group started coverage on Teradyne in a research report on Thursday, July 10th. They issued a "sell" rating and a $80.00 target price for the company. Finally, Morgan Stanley increased their target price on shares of Teradyne from $68.00 to $74.00 and gave the stock an "underweight" rating in a research report on Wednesday, July 9th. Three analysts have rated the stock with a sell rating, five have assigned a hold rating, nine have issued a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, Teradyne has an average rating of "Hold" and an average price target of $112.50.

Institutional Inflows and Outflows

An institutional investor recently bought a new position in Teradyne stock. Caxton Associates LLP purchased a new position in shares of Teradyne, Inc. (NASDAQ:TER - Free Report) in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 3,590 shares of the company's stock, valued at approximately $297,000. 99.77% of the stock is currently owned by hedge funds and other institutional investors.

Teradyne Company Profile

Teradyne, Inc designs, develops, manufactures, and sells automated test systems and robotics products worldwide. It operates through four segments; Semiconductor Test, System Test, Robotics, and Wireless Test. The Semiconductor Test segment offers products and services for wafer level and device package testing of semiconductor devices in automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game, and other applications.

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