Zacks Research Has Negative Outlook for Teradyne Q2 Earnings

Teradyne, Inc. (NASDAQ:TER - Free Report) - Equities researchers at Zacks Research decreased their Q2 2025 earnings per share (EPS) estimates for shares of Teradyne in a report released on Monday, May 19th. Zacks Research analyst R. Department now expects that the company will earn $0.53 per share for the quarter, down from their prior estimate of $0.65. The consensus estimate for Teradyne's current full-year earnings is $3.88 per share. Zacks Research also issued estimates for Teradyne's Q3 2025 earnings at $0.90 EPS, Q4 2025 earnings at $0.98 EPS, FY2025 earnings at $3.16 EPS, Q1 2026 earnings at $0.86 EPS, Q2 2026 earnings at $0.82 EPS and Q1 2027 earnings at $1.11 EPS.

Several other brokerages also recently commented on TER. Cantor Fitzgerald lowered their target price on Teradyne from $150.00 to $110.00 and set an "overweight" rating for the company in a research note on Wednesday, March 12th. Susquehanna reduced their price target on Teradyne from $155.00 to $133.00 and set a "positive" rating on the stock in a report on Wednesday, April 30th. Morgan Stanley reduced their price target on Teradyne from $81.00 to $69.00 and set an "underweight" rating on the stock in a report on Wednesday, April 16th. KeyCorp reiterated a "sector weight" rating on shares of Teradyne in a report on Thursday, April 17th. Finally, TD Cowen reduced their target price on Teradyne from $135.00 to $110.00 and set a "buy" rating on the stock in a report on Wednesday, March 12th. Two analysts have rated the stock with a sell rating, four have given a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $117.56.

Teradyne Stock Down 1.5%

TER stock opened at $81.47 on Tuesday. The company has a market cap of $13.07 billion, a PE ratio of 24.47, a price-to-earnings-growth ratio of 2.83 and a beta of 1.70. The business has a 50-day simple moving average of $78.86 and a 200 day simple moving average of $104.12. Teradyne has a 52 week low of $65.77 and a 52 week high of $163.21.

Teradyne (NASDAQ:TER - Get Free Report) last announced its earnings results on Monday, April 28th. The company reported $0.75 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.61 by $0.14. The company had revenue of $685.70 million during the quarter, compared to analysts' expectations of $680.54 million. Teradyne had a net margin of 19.23% and a return on equity of 19.08%. Teradyne's quarterly revenue was up 14.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.51 earnings per share.

Teradyne Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 13th. Shareholders of record on Thursday, May 22nd will be paid a $0.12 dividend. The ex-dividend date of this dividend is Thursday, May 22nd. This represents a $0.48 dividend on an annualized basis and a yield of 0.59%. Teradyne's dividend payout ratio (DPR) is presently 13.56%.

Teradyne declared that its board has authorized 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 reacquire up to 8.1% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board believes its shares are undervalued.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of TER. Norges Bank bought a new position in Teradyne in the 4th quarter valued at $270,989,000. Van ECK Associates Corp grew its stake in shares of Teradyne by 59.9% during the 4th quarter. Van ECK Associates Corp now owns 4,928,143 shares of the company's stock worth $620,552,000 after acquiring an additional 1,846,079 shares during the period. Federated Hermes Inc. grew its stake in shares of Teradyne by 188.8% during the 1st quarter. Federated Hermes Inc. now owns 2,105,852 shares of the company's stock worth $173,943,000 after acquiring an additional 1,376,631 shares during the period. AQR Capital Management LLC grew its stake in shares of Teradyne by 1,612.4% during the 1st quarter. AQR Capital Management LLC now owns 1,404,752 shares of the company's stock worth $113,251,000 after acquiring an additional 1,322,716 shares during the period. Finally, Goldman Sachs Group Inc. grew its stake in shares of Teradyne by 224.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,851,684 shares of the company's stock worth $152,949,000 after acquiring an additional 1,280,120 shares during the period. 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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