Teradyne (NASDAQ:TER) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Teradyne reported a quarterly earnings per share of $0.57, exceeding analyst estimates of $0.54 by $0.03.
• The company declared a quarterly dividend of $0.12 per share, with an annualized dividend yield of 0.53%.
• Teradyne is undergoing a stock buyback program authorized for up to $1.00 billion, indicating that the leadership believes the stock is undervalued.

Teradyne (NASDAQ:TER - Get Free Report) released its earnings results on Tuesday. The company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.54 by $0.03, Zacks reports. Teradyne had a return on equity of 20.06% and a net margin of 19.86%.

Teradyne Stock Performance

Shares of TER traded down $0.59 during midday trading on Tuesday, hitting $90.55. 6,682,914 shares of the stock were exchanged, compared to its average volume of 3,315,260. Teradyne has a 52-week low of $65.77 and a 52-week high of $144.16. The stock has a fifty day simple moving average of $87.83 and a 200 day simple moving average of $93.39. The firm has a market cap of $14.53 billion, a P/E ratio of 25.58, a P/E/G ratio of 3.99 and a beta of 1.70.

Teradyne Dividend Announcement

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

Teradyne declared that its board has approved a stock repurchase program on Monday, April 28th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the company to purchase up to 8.1% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its stock is undervalued.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the company. KeyCorp restated a "sector weight" rating on shares of Teradyne in a research report on Thursday, April 17th. Cantor Fitzgerald set a $105.00 price target on Teradyne and gave the company an "overweight" rating in a report on Tuesday, June 24th. Morgan Stanley increased their price target on Teradyne from $68.00 to $74.00 and gave the company an "underweight" rating in a report on Wednesday, July 9th. JPMorgan Chase & Co. reaffirmed a "neutral" rating and issued a $102.00 price target (up previously from $88.00) on shares of Teradyne in a report on Thursday, July 17th. Finally, The Goldman Sachs Group started coverage on Teradyne in a report on Thursday, July 10th. They issued a "sell" rating and a $80.00 price target for the company. Three research analysts have rated the stock with a sell rating, five have assigned a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, Teradyne presently has a consensus rating of "Hold" and an average target price of $112.50.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Teradyne stock. Integrated Wealth Concepts LLC lifted its stake in Teradyne, Inc. (NASDAQ:TER - Free Report) by 12.8% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 4,136 shares of the company's stock after purchasing an additional 468 shares during the period. Integrated Wealth Concepts LLC's holdings in Teradyne were worth $342,000 at the end of the most recent quarter. Hedge funds and other institutional investors own 99.77% of the company's stock.

About Teradyne

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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