On July 25, 2024, Teradyne Inc (TER, Financial) released its 8-K filing for the second quarter of 2024, reporting revenue and earnings that exceeded analyst estimates. Teradyne, a leading provider of testing equipment for semiconductors and other electronic systems, posted a revenue of $730 million, surpassing the estimated $701.20 million. The company's GAAP earnings per share (EPS) stood at $1.14, significantly higher than the estimated $0.83.
Company Overview
Teradyne Inc (TER, Financial) specializes in automated test equipment for semiconductors, system testing for hard disk drives, circuit boards, and electronics systems, as well as wireless testing for devices. Since entering the industrial automation market in 2015, Teradyne has also been selling collaborative and autonomous robots for factory applications. The company serves a diverse range of end markets and geographies, with a significant focus on semiconductor testing, catering to vertically integrated, fabless, and foundry chipmakers.
Q2 2024 Performance Highlights
Teradyne Inc (TER, Financial) reported a revenue of $730 million for Q2 2024, marking a 7% increase from Q2 2023. The company's GAAP net income for the quarter was $186.3 million, or $1.14 per diluted share, compared to $0.73 in Q2 2023. On a non-GAAP basis, net income was $140.0 million, or $0.86 per diluted share.
The revenue breakdown for Q2 2024 is as follows:
| Segment | Revenue (in millions) |
|---|---|
| Semiconductor Test | $543 |
| System Test | $61 |
| Wireless Test | $36 |
| Robotics | $90 |
Financial Achievements and Challenges
Teradyne's strong performance in Q2 2024 was driven by a 14% year-over-year growth in the Semiconductor Test segment, fueled by continued strength in memory and a demand recovery in System-on-Chip (SoC) testing. The company's robotics business also showed sequential and year-over-year growth.
“In the second quarter, AI applications drove accelerated demand from both compute and memory customers, and our robotics business grew sequentially and year-over-year,” said Teradyne CEO Greg Smith. “Overall, 2024 is shaping up as we expected, and we believe the deployment of edge AI will strengthen demand in our test and robotics businesses over the mid-term.”
Income Statement and Key Metrics
Key details from Teradyne's income statement for Q2 2024 include:
| Metric | Q2 2024 | Q2 2023 | Q1 2024 |
|---|---|---|---|
| Revenue (mil) | $730 | $684 | $600 |
| GAAP EPS | $1.14 | $0.73 | $0.40 |
| Non-GAAP EPS | $0.86 | $0.79 | $0.51 |
Balance Sheet and Cash Flow
As of June 30, 2024, Teradyne reported total assets of $3.63 billion, with cash and cash equivalents amounting to $421.9 million. The company's total liabilities stood at $900.9 million, while shareholders' equity was $2.73 billion.
Future Outlook
Looking ahead, Teradyne provided guidance for Q3 2024, with expected revenue between $680 million and $740 million. The company anticipates GAAP net income per diluted share to be in the range of $0.62 to $0.82, and non-GAAP net income per diluted share to be between $0.66 and $0.86.
For more detailed information, investors can access the full earnings report and webcast on Teradyne's Investor Relations page.
Explore the complete 8-K earnings release (here) from Teradyne Inc for further details.
