Teradyne Sees Q2 Revenue Drop to $1.15B-$1.25B, EPS Forecast Falls
Teradyne forecasts Q2 revenue of $1.15B-$1.25B and adjusted EPS of $1.86-$2.15, down from Q1 revenue of $1.28B and EPS $2.56, driving its shares down over 8%. Q1 revenue surged 87% YoY to $1.28B, non-GAAP EPS of $2.56 topped analysts’ $2.11 estimate.
1. Strong First-Quarter Results
Teradyne reported Q1 revenue of $1.28B, up 87% year-over-year, with non-GAAP EPS of $2.56 per share, surpassing analyst expectations of $2.11. Semiconductor Test sales were $1.11B, while Robotics and Product Test contributed $91M and $80M, respectively.
2. Sequential Decline Forecast
For Q2, Teradyne forecast revenue of $1.15B-$1.25B and adjusted EPS of $1.86-$2.15, both below Q1 levels of $1.28B and $2.56 per share. The midpoint of revenue guidance implies a sequential decline of about 8%, reflecting anticipated market cyclical softness.
3. Share Price Reaction
Shares fell over 8% in extended trading following the guidance, erasing part of the 83% year-to-date gain. Investor sentiment reflects concerns over demand variability in the semiconductor test equipment market.
4. Business Drivers and Acquisition
Teradyne’s automated test equipment business serves major chipmakers and is sensitive to semiconductor cycles, with Apple as a key customer in its smartphone exposure. Earlier this month, the company acquired TestInsight to enhance its semiconductor test development and validation software capabilities.