Teradyne shares fall 7% after forecasting another drop in revenue

Daily Trade

Shares of Teradyne declined in post-market trading on Tuesday after it warned of weaker demand for some systems and forecast another drop in revenue.

The stock
TER,
-1.40%

was down 7.3% to $97.00 in after-hours trading, and lost 1.4% to fall to $104.59 at the close. Shares are down 2.8% in the past year.

The automatic testing-equipment maker said it expects first-quarter revenue of $540 million to $590 million, a fall of about 4.5% to 12.5% from the same period a year earlier. Analysts polled by FactSet expect first-quarter revenue of $625.5 million.

Per-share profit is expected to be 19 cents to 35 cents in the first quarter, down from 50 cents a year earlier and below analysts’ expectations.

Stripping out certain one-time items, Teradyne expects a per-share profit of 22 cents to 38 cents, compared with a profit of 54 cents expected by analysts.

The North Reading, Mass.-based, company also reported a more-than-expected slump in fourth quarter revenue as profit fell. After reporting its latest results Teradyne has posted a fall in sales for the last two years.

Chief Executive Greg Smith said results were affected by weaker demand in system-on-a-chip test systems. Demand was stronger in memory test systems and robotics, the company said.

Articles You May Like

Greenlight’s David Einhorn says the markets are broken and getting worse
Gary Gensler says he was ‘proud to serve’ as SEC chair, defends his approach to crypto regulation
Stock-market investors cheered end of election uncertainty. Policy uncertainty remains.
‘I’m 38 and completely broke’: I earn $50,000 a year. What professional degree will guarantee me six figures?
Acurx Pharmaceuticals to add up to $1 million in bitcoin for treasury reserve, following MicroStrategy’s playbook