NASDAQ$TER

Teradyne Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Revenue and profits exceeded guidance due to strong SOC test shipments and effective supply chain management.

Teradyne reported Q2 2020 revenue of $839 million, a 49% increase year-over-year, driven by strong Semiconductor Test demand. GAAP EPS was $1.05, up 91% year-over-year, and Non-GAAP EPS was $1.33, up 102% year-over-year.

  • Revenue of $839 million in Q2’20 grew 49% from Q2’19
  • Q2’20 GAAP earnings per share grew 91% and Non-GAAP earnings per share grew 102% from Q2’19
  • Test revenue grew 59% from Q2’19 on Semiconductor Test strength
  • Industrial Automation revenue declined 21% from Q2’19 on global manufacturing weakness

Headline financials

Total Revenue

$839M

Previous: $564M+48.7%
EPS (adj)

$1.33

Previous: $0.66+101.5%
Capital Expenditures

-$84M

Previous: -$59M-42.5%
Free Cash Flow

$105M

Previous: $38.4M+172.9%
Net Income

$189M

Previous: $97.4M+94.0%
Operating Income

$218M

Previous: $134M+62.7%
Gross Profit

$471M

Previous: $324M+45.6%
Cash & Equivalents

$725M

Previous: $495M+46.5%
Total Assets

$3.25B

Previous: $2.67B+21.6%
Stock-Based Comp

$10.9M

Previous: $8.64M+26.3%

Revenue & EPS history

Teradyne · Revenue · Quarterly

$839M

Q2 2020+48.7%vs Q2 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Teradyne · $718M total across 2 segments · Q2 2020

  • Semiconductor Test
    $659M
  • Robotics
    $59M-21.0%

Forward guidance

Teradyne anticipates Q3 2020 revenue between $745 million and $805 million, with GAAP net income per diluted share of $0.91 to $1.06 and non-GAAP net income per diluted share of $1.01 to $1.17.

Tailwinds

  • Increased memory and storage test shipments.
  • Production ramps of new product design wins in SOC test.
  • Mid-point revenue guidance represents 33% growth from Q3 2019.
  • Stronger than expected System on a Chip (SOC) test shipments.
  • Accelerated demand for mobility related test capacity.

Headwinds

  • Industrial Automation sales were down from the year ago period due to the global slowdown in business activity.
  • The COVID-19 pandemic has adversely impacted the Company’s results of operations, including increased costs company-wide and decreased sales in its industrial automation businesses.
  • New regulations restrict the sale to Huawei and the designated Huawei entities of items, such as semiconductor devices, manufactured by Huawei’s contract manufacturers.
  • The new export controls could disrupt the Company’s supply chain, increase compliance costs and impact the demand for the Company’s products in China.
  • Due to the uncertainty regarding the length, severity and potential business impact of the COVID-19 pandemic, Teradyne has suspended its stock repurchase program announced in January 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.2%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+4.8%

Avg return

30 days after

45%

31 / 69 earnings

Positive

+23.7%

Q2 2019

Best reaction

-19.6%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%+16.6%+22.3%
Q4 2025+8.2%+20.3%+22.5%
Q3 2025+20.7%+26.8%+26.0%
Q2 2025+0.0%+2.2%+13.5%
Q1 2025-2.5%-1.2%+5.4%
Q4 2024-5.7%-8.5%-10.0%
Q3 2024-11.7%-11.2%-13.7%
Q2 2024-18.3%-16.0%-10.7%
Q1 2024+9.1%+18.5%+44.2%
Q4 2023-8.9%-9.1%-2.3%
Q3 2023-7.1%-8.9%+1.0%
Q2 2023-5.6%-3.7%-11.5%
Q1 2023-4.2%-2.2%+9.9%
Q4 2022+0.6%-2.8%-2.3%
Q3 2022+6.2%+7.6%+21.4%
Q2 2022-2.2%+0.8%-3.8%
Q1 2022-5.6%-6.3%-6.8%
Q4 2021-19.6%-15.1%-13.2%
Q3 2021+4.9%+17.9%+28.6%
Q2 2021-4.2%-0.3%-8.1%
Q1 2021-0.8%-6.3%-2.1%
Q4 2020-13.1%-14.9%-6.9%
Q3 2020+6.2%+6.1%+22.8%
Q2 2020-0.3%-6.9%-1.1%
Q1 2020+0.5%-0.8%-1.2%
Q4 2019+6.5%-2.9%-7.8%
Q3 2019+1.1%+5.9%+2.9%
Q2 2019+23.7%+20.3%+14.5%
Q1 2019+7.0%+8.7%-5.7%
Q4 2018+13.3%+15.6%+29.7%
Q3 2018-6.4%+0.2%+10.9%
Q2 2018+5.5%+8.6%-1.1%
Q1 2018-14.2%-17.9%-4.8%
Q4 2017-7.5%-3.2%-8.3%
Q3 2017+7.2%+8.9%+11.3%
Q2 2017-4.8%-4.2%-4.3%
Q1 2017+8.3%+6.6%+6.0%
Q4 2016+3.9%+8.6%+9.1%
Q3 2016+4.1%+6.2%+14.7%
Q2 2016-3.2%-6.5%-0.3%
Q1 2016-7.3%
Q4 2015-4.2%
Q3 2015+8.5%
Q2 2015+3.4%
Q1 2015+9.6%
Q4 2014-1.4%
Q3 2014-0.1%
Q2 2014-8.7%
Q1 2014-5.9%
Q4 2013+2.6%
Q3 2013+0.5%
Q2 2013-6.0%
Q1 2013+8.1%
Q4 2012-5.1%
Q3 2012+1.9%
Q2 2012+0.2%
Q1 2012+0.8%
Q4 2011-2.8%
Q3 2011+1.7%
Q2 2011+5.5%
Q1 2010-2.2%
Q1 2011-0.2%
Q4 2008-0.1%
Q4 2010-0.1%
Q3 2009+1.0%
Q3 2010+1.0%
Q4 2009-2.7%
Q2 2009-2.7%
Q2 2010-2.7%

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