Teradyne forecasts downbeat first-quarter revenue on weak demand

Teradyne

29/01/2025 22:38

Jan 29 (Reuters) - Teradyne  TER.O  forecast
first-quarter revenue below Wall Street estimates on Wednesday,
indicating softening demand for its semiconductor-testing
equipment.
    Shares of the company were down 2% in after-hours trading. 
    High borrowing costs and economic uncertainty have forced
businesses to reduce investments, impacting demand for
Teradyne's products. 
    Demand from certain markets such as automotive continues to
face pressure as customers grapple with surplus inventory due to
a downturn triggered by stockpiling during the pandemic.
    The North Reading, Massachusetts-based company also said it
plans to "strategically realign" its robotics business, which
would support Teradyne's growth and profitability over the
mid-term.
    "In 2025, we expect year-over-year revenue acceleration with
improving conditions in our test businesses. We expect the
secular growth opportunities in AI compute and memory to remain,
and we will continue to invest into these areas," CEO Greg Smith
said.
    Teradyne designs and develops technology for chips and
electronic equipment testing, and also sells robotic systems to
customers in the manufacturing sector.
    The company, with customers including Qualcomm  QCOM.O  and
Texas Instruments  TXN.O , forecast first-quarter revenue
between $660 million and $700 million, the midpoint of which is
below analysts' average estimate of $694 million, according to
data compiled by LSEG.
    It expects adjusted earnings per share in the range of 58
cents to 68 cents, against estimates of 63 cents.
        Teradyne's revenue for the fourth quarter rose by 12% to
$752.9 million compared to the same period a year ago, above the
average estimate of $740.8 million.
    On an adjusted basis, the company earned 95 cents per share,
compared with estimates of 91 cents per share in the fourth
quarter.
    
    

 (Reporting by Juby Babu in Mexico City; Editing by Mohammed
Safi Shamsi)
 ((Juby.Babu@thomsonreuters.com;))