Teradyne forecasts strong Q4 results on steady chip-testing demand

Teradyne

23/10/2024 22:51

Oct 23 (Reuters) - Teradyne  TER.O  forecast
fourth-quarter profit and revenue above Wall Street estimates on
Wednesday, owing to accelerated demand for its
semiconductor-testing equipment, sending its shares up 2.5% in
extended trading.  
    Growing demand from memory chips and cloud compute firms
that offer AI capabilities is benefiting Teradyne, as the
chip-testing technology provider helps ensure the performance of
semiconductors, electronic systems and wireless devices.  
    The company forecast fourth-quarter revenue of $710 million
to $760 million, with the mid-point above analysts' average
estimate of $736.5 million, according to data compiled by LSEG.
    Teradyne forecast adjusted earnings per share for the fourth
quarter in the range of 80 cents to 97 cents, compared with
estimates of 88 cents.
    The company, which counts Qualcomm  QCOM.O  and Texas
Instruments  TXN.O  among its customers, designs and develops
technology to test chips and electronic equipment. It also sells
robotic systems to customers in the manufacturing sector.    
    The company's revenue for the third quarter rose about 5% to
$737 million from a year ago, compared with estimates of $716.4
million.   
    On an adjusted basis, the company earned 90 cents per share
in the quarter ended Sept. 29, compared with estimates of 78
cents per share.  

 (Reporting by Priyanka.G in Bengaluru; editing by Alan Barona)
 ((mailto:Priyanka.G@thomsonreuters.com))