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.

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