Teradyne is set to announce its third-quarter 2023 results on October 25. The company expects revenues between $650 million and $710 million for the quarter. Analysts predict sales to decline by 21.8% compared to the same period last year. Teradyne’s non-GAAP earnings are anticipated to range between 61 cents and 81 cents, with a consensus estimate of 66 cents.

Teradyne is likely to benefit from increasing demand for semiconductor test equipment in the automotive and industrial markets. The growth of DDR5 and HBM devices for data center applications is expected to drive retooling in memory tests, benefiting Teradyne. However, the company may face headwinds due to weak overall demand and rising inflationary pressures. Sluggish demand for mobility and computer-related SOC tests may negatively impact the performance of Teradyne’s Semiconductor Test segment.

Teradyne’s Robotics segment may also be affected by slow industrial growth. However, the contribution of UR20 revenues is expected to support top-line growth.

According to the Zacks model, the combination of a positive Earnings ESP (Expected Surprise Prediction) and a favorable Zacks Rank increases the chances of an earnings beat. Unfortunately, Teradyne has a negative Earnings ESP of -1.90% and carries a Zacks Rank #4 (Sell).

Investors may want to consider other companies that have a higher likelihood of beating earnings estimates. GoDaddy, with an Earnings ESP of +14.09% and a Zacks Rank #1, is worth considering. Pinterest, with an Earnings ESP of +4.76% and a Zacks Rank #1, is another option. Meta Platforms also has a positive Earnings ESP of +3.98% and a Zacks Rank of 3.

In conclusion, Teradyne’s third-quarter results are closely watched, as the company faces both positive and negative factors impacting its performance.

Definitions:
– Non-GAAP earnings: Earnings calculated based on generally accepted accounting principles, excluding certain items, to provide a clearer picture of a company’s financial performance.
– Semiconductor Test equipment: Equipment used to test and verify the functionality and performance of semiconductor devices.
– Earnings ESP: Expected Surprise Prediction, a measure used to determine the likelihood of an earnings beat based on the difference between the Most Accurate Estimate and the Zacks Consensus Estimate.

Sources:
– Teradyne, Inc. Price and EPS Surprise
– Zacks Investment Research