Teradyne reports $342.4 million in third-quarter net income

Teradyne guides fourth-quarter adjusted earnings to $1.95-$2.25 a share

Teradyne, an automated test developer, reported third-quarter net income of $342.4 million, up from $119.6 million in the prior year, and revenue of $1.31 billion, up from $769.2 million.

The revenue result beat the $1.27 billion Wall Street expected, according to The Wall Street Journal’s report on the company’s results.

Per-share results moved higher as well. Teradyne reported $2.17 a share, up from 75 cents a share a year earlier. Adjusted earnings were $2.29 a share, above the $2.15 a share expected by analysts polled by FactSet.

The Wall Street Journal described Teradyne’s quarter as “a surge in third-quarter profit boosted by revenue growth for its semiconductor tests.” Teradyne is an automated test developer, and the report pointed to the semiconductor test business as what lifted the quarter’s profit.

Teradyne also set guidance for the fourth quarter, expecting revenue of $1.25 billion to $1.35 billion and adjusted earnings of $1.95 to $2.25 a share.

Analysts see revenue of $1.27 billion and adjusted earnings of $2.08 a share for Teradyne in the same quarter, according to the report, which places both consensus figures inside the ranges the company set.

Teradyne’s fourth-quarter adjusted earnings guidance of $1.95 to $2.25 a share is below the $2.29 a share it reported in the third quarter because the upper bound is $2.25. The $2.08 analyst estimate falls within the guided range.

Teradyne’s fourth-quarter results will be measured against those guided ranges and the analyst estimates now on record, after a third quarter in which the company beat both revenue and adjusted earnings expectations.