Zacks Research Brokers Boost Earnings Estimates for Teradyne

Key Points

• Zacks Research raised its FY2025 earnings per share (EPS) estimate for Teradyne to $3.08, marking an increase from the previous estimate of $3.05, and maintains a "Strong-Buy" rating on the stock.
• Multiple investment firms have increased their target prices for Teradyne, with Morgan Stanley raising it to $136 and Susquehanna to $200, reflecting strong market confidence.
• Teradyne recently reported Q2 earnings of $0.57 per share, exceeding analysts’ expectations, although its revenue declined by 10.7% year-over-year.

Teradyne, Inc. (NASDAQ:TER - Free Report) - Analysts at Zacks Research lifted their FY2025 EPS estimates for Teradyne in a note issued to investors on Thursday, October 23rd. Zacks Research analyst Team now anticipates that the company will earn $3.08 per share for the year, up from their prior estimate of $3.05. Zacks Research currently has a "Strong-Buy" rating on the stock. The consensus estimate for Teradyne's current full-year earnings is $3.88 per share. Zacks Research also issued estimates for Teradyne's Q4 2025 earnings at $1.00 EPS, Q1 2026 earnings at $0.88 EPS, Q2 2026 earnings at $0.84 EPS, Q3 2026 earnings at $0.85 EPS, Q4 2026 earnings at $1.16 EPS, FY2026 earnings at $3.72 EPS, Q1 2027 earnings at $1.13 EPS, Q2 2027 earnings at $1.07 EPS, Q3 2027 earnings at $1.07 EPS and FY2027 earnings at $4.96 EPS.

TER has been the subject of several other research reports. Morgan Stanley increased their target price on shares of Teradyne from $100.00 to $136.00 and gave the stock an "equal weight" rating in a research note on Tuesday, October 14th. Susquehanna increased their target price on shares of Teradyne from $133.00 to $200.00 and gave the stock a "positive" rating in a research note on Monday, September 22nd. Cowen reissued a "buy" rating on shares of Teradyne in a research report on Wednesday, July 30th. Weiss Ratings reissued a "hold (c)" rating on shares of Teradyne in a research report on Wednesday, October 8th. Finally, The Goldman Sachs Group increased their price target on shares of Teradyne from $85.00 to $130.00 and gave the stock a "sell" rating in a research report on Thursday, October 9th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $127.27.

Teradyne Price Performance

Shares of TER stock opened at $145.04 on Friday. The firm has a market cap of $23.07 billion, a PE ratio of 50.19, a price-to-earnings-growth ratio of 2.91 and a beta of 1.82. The company has a 50-day moving average of $127.15 and a two-hundred day moving average of $100.39. Teradyne has a 1-year low of $65.77 and a 1-year high of $150.71.

Teradyne (NASDAQ:TER - Get Free Report) last announced its quarterly earnings data 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. The firm had revenue of $651.80 million during the quarter, compared to analyst estimates of $649.02 million. Teradyne had a net margin of 16.59% and a return on equity of 18.16%. Teradyne's quarterly revenue was down 10.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.86 earnings per share. Teradyne has set its Q3 2025 guidance at 0.690-0.870 EPS.

Teradyne Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, September 29th. Investors of record on Friday, September 5th were issued a $0.12 dividend. The ex-dividend date of this dividend was Friday, September 5th. This represents a $0.48 annualized dividend and a yield of 0.3%. Teradyne's dividend payout ratio (DPR) is 16.61%.

Insiders Place Their Bets

In related news, CEO Gregory Stephen Smith sold 1,108 shares of the firm's stock in a transaction that occurred on Friday, October 10th. The shares were sold at an average price of $145.24, for a total value of $160,925.92. Following the sale, the chief executive officer owned 94,777 shares of the company's stock, valued at $13,765,411.48. This trade represents a 1.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders have sold a total of 3,324 shares of company stock valued at $411,954 over the last 90 days. 0.16% of the stock is owned by company insiders.

Institutional Trading of Teradyne

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. LS Investment Advisors LLC raised its holdings in Teradyne by 2.3% during the third quarter. LS Investment Advisors LLC now owns 3,945 shares of the company's stock worth $543,000 after purchasing an additional 89 shares in the last quarter. Fulton Bank N.A. grew its position in shares of Teradyne by 4.3% during the second quarter. Fulton Bank N.A. now owns 2,722 shares of the company's stock worth $245,000 after acquiring an additional 113 shares during the last quarter. HighTower Advisors LLC grew its position in Teradyne by 1.0% in the 1st quarter. HighTower Advisors LLC now owns 12,528 shares of the company's stock valued at $1,035,000 after buying an additional 124 shares during the last quarter. Manchester Capital Management LLC grew its position in Teradyne by 29.4% in the 2nd quarter. Manchester Capital Management LLC now owns 586 shares of the company's stock valued at $53,000 after buying an additional 133 shares during the last quarter. Finally, Outlook Wealth Advisors LLC grew its position in Teradyne by 4.8% in the 2nd quarter. Outlook Wealth Advisors LLC now owns 3,452 shares of the company's stock valued at $310,000 after buying an additional 157 shares during the last quarter. Institutional investors and hedge funds own 99.77% of the company's stock.

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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