Teradyne (NASDAQ:TER) Shares Gap Up on Better-Than-Expected Earnings

Teradyne, Inc. (NASDAQ:TER)’s share price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $90.55, but opened at $105.73. Teradyne shares last traded at $107.57, with a volume of 6,679,371 shares.

The company reported $0.57 earnings per share for the quarter, topping analysts’ consensus estimates of $0.54 by $0.03. The firm had revenue of $651.80 million for the quarter, compared to the consensus estimate of $649.02 million. Teradyne had a return on equity of 18.16% and a net margin of 16.59%. The business’s revenue was down 10.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.86 earnings per share.

Teradyne Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 13th. Stockholders of record on Thursday, May 22nd were issued a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.45%. The ex-dividend date was Thursday, May 22nd. Teradyne’s dividend payout ratio is presently 13.56%.

Teradyne announced that its Board of Directors has initiated a share repurchase program on Monday, April 28th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the company to buy 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.

Wall Street Analyst Weigh In

TER has been the subject of a number of research analyst reports. JPMorgan Chase & Co. restated a “neutral” rating and set a $102.00 price objective (up previously from $88.00) on shares of Teradyne in a report on Thursday, July 17th. The Goldman Sachs Group initiated coverage on Teradyne in a report on Thursday, July 10th. They set a “sell” rating and a $80.00 price objective for the company. Susquehanna cut their price target on Teradyne from $155.00 to $133.00 and set a “positive” rating for the company in a research note on Wednesday, April 30th. UBS Group boosted their price target on Teradyne from $110.00 to $120.00 and gave the company a “buy” rating in a research note on Monday, July 21st. Finally, Morgan Stanley boosted their price target on Teradyne from $68.00 to $74.00 and gave the company an “underweight” rating in a research note on Wednesday, July 9th. Three equities research analysts have rated the stock with a sell rating, five have given a hold rating, nine have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $112.50.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. FNY Investment Advisers LLC raised its position in Teradyne by 167.4% during the second quarter. FNY Investment Advisers LLC now owns 5,263 shares of the company’s stock valued at $473,000 after purchasing an additional 3,295 shares in the last quarter. Whittier Trust Co. raised its position in Teradyne by 48.0% during the second quarter. Whittier Trust Co. now owns 987 shares of the company’s stock valued at $89,000 after purchasing an additional 320 shares in the last quarter. Chicago Partners Investment Group LLC raised its position in Teradyne by 42.4% during the second quarter. Chicago Partners Investment Group LLC now owns 5,209 shares of the company’s stock valued at $485,000 after purchasing an additional 1,552 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in Teradyne during the second quarter valued at approximately $1,906,000. Finally, Stanley Laman Group Ltd. acquired a new position in Teradyne during the second quarter valued at approximately $5,583,000. 99.77% of the stock is currently owned by institutional investors and hedge funds.

Teradyne Price Performance

The firm has a market capitalization of $17.27 billion, a price-to-earnings ratio of 37.25, a P/E/G ratio of 4.01 and a beta of 1.70. The firm’s 50-day simple moving average is $88.58 and its 200 day simple moving average is $93.47.

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.