The Chicago Entrepreneur

: Teradyne stock rallies more than 5% after earnings, outlook beat

Teradyne Inc. TER shares rallied in the extended session Wednesday after the electronic testing equipment maker’s results and outlook sailed past Wall Street estimates. Teradyne shares rallied 7% after hours, following a 1.1% decline in the regular session to close at $93.33. The company reported first-quarter net income of $83.5 million, or 50 cents a share, compared with $161.9 million, or 92 cents a share, in the year-ago period. Adjusted earnings were 55 cents a share, compared with 98 cents a share in the year-ago quarter. Revenue fell to $617.5 million from $755.4 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 43 cents on revenue of $597.5 million. “A faster recovery from supply-chain constraints in our test businesses and robotics shipments within the range of our expectations contributed to first-quarter financial results that were above the midpoint of guidance,” said Greg Smith, Teradyne chief executive, in a statement. “Looking ahead, we expect stronger demand in automotive and industrial semiconductor test to help offset ongoing weakness in smartphone-related end markets. In robotics, slowing global industrial growth is contributing to softening near-term demand.” Teradyne expects second-quarter adjusted earnings of 55 cents to 74 cents a share on revenue of $625 million to $685 million, while analysts had forecast earnings of 51 cents a share on revenue of $619.1 million.

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