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TERADYNE, INC 8-K Report, Financial Results (Oct 24, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 24, 2024
Period End
October 23, 2024
Security
TER
In the record · 2016–202610-K1110-Q328-K91

TER filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 91 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jun ’17Jun ’17
  2. Material agreement8-K · May ’20May ’20
  3. Leadership change8-K · Jun ’22Jun ’22
  4. Material agreement8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed October 24, 2024. Cited figures are marked; the original filing is the authoritative source.

Teradyne (NASDAQ: TER) reported third-quarter 2024 results on October 23, 2024 that came in above its Q3 guidance.

Revenue was $737.3 milliona, up about 5% from $703.7 million in Q3 2023 and roughly flat with Q2 2024's $729.9 million. GAAP net income was $145.6 million, or $0.89 per diluted share, versus $0.78 a year earlier. Non-GAAP diluted EPS was $0.90, compared with $0.80 in Q3 2023 and $0.86 in Q2 2024.

Management attributed the year-over-year growth to strong AI-related demand, especially record Memory revenue in Semiconductor Test driven by High Bandwidth Memory (HBM) and compute applications. Segment mix was Semiconductor Test $543 millionb, System Test $73 million, Wireless Test $33 million and Robotics $89 million. Quarterly GAAP operating margin fell to 20.6% from 28.8% in Q2, mainly because Q2 included a $57.5 million gain on the May 2024 sale of the Device Interface Solutions business to Technoprobe.

Teradyne also now holds a $538 millionc equity method investment in Technoprobe, following its roughly $527 million nine-month investment purchase. Nine-month revenue was $2.07 billion, up 3% year over year, and nine-month GAAP diluted EPS was $2.42. Fourth-quarter 2024 guidance calls for revenue of $710 million to $760 million, GAAP diluted EPS of $0.73 to $0.91 and non-GAAP diluted EPS of $0.80 to $0.97.

The guidance midpoint implies a modest sequential revenue decline. The balance sheet remains strong, with $552 milliond in cash and marketable securities at quarter-end, though cash fell from $758 million at year-end 2023 after share repurchases and the Technoprobe investment. The company paid a $0.12 quarterly dividend.

02—Key points

Key Highlights

  1. Q3 2024 revenue of $737.3 million was above guidance and up about 5% year over year, driven by AI-related demand.
  2. Semiconductor Test generated $543 million of revenue, supported by record Memory revenue tied to HBM and AI compute.
  3. GAAP diluted EPS was $0.89 and non-GAAP diluted EPS was $0.90, up from $0.78 and $0.80 in Q3 2023.
  4. Q2 2024 GAAP results included a $57.5 million gain on the sale of the Device Interface Solutions business to Technoprobe, which makes the sequential comparison look weaker.
  5. Teradyne now carries a $538 million equity method investment in Technoprobe.
  6. Q4 2024 guidance of $710-$760 million in revenue and $0.80-$0.97 non-GAAP EPS brackets the Q3 run rate.
  7. The company declared a $0.12 per share quarterly dividend and repurchased $24.7 million of stock in the quarter.

03—Questions

Frequently Asked Questions

  1. How did Teradyne perform relative to its Q3 2024 guidance?

    Revenue of $737 million was at the high end of guidance, and both GAAP and non-GAAP earnings per share came in above the guided range.

  2. What drove growth in the quarter?

    Management pointed to AI-related demand, specifically record Memory revenue in Semiconductor Test from High Bandwidth Memory and compute applications. Robotics also showed improving traction in recurring software and services revenue.

  3. Why did GAAP operating income fall sequentially?

    Q2 2024 included a $57.5 million gain on the sale of the Device Interface Solutions business. Q3 also carried a $3.6 million legal settlement and $4.6 million in restructuring and other charges, which weighed on margins.

  4. What is the outlook for Q4 2024?

    Guidance calls for revenue of $710-$760 million, GAAP diluted EPS of $0.73-$0.91 and non-GAAP diluted EPS of $0.80-$0.97. The midpoint implies a modest sequential decline in revenue.

  5. How is Teradyne deploying its capital?

    The company invested about $527 million in Technoprobe during the first nine months, repurchased $55 million of stock and paid $57 million in dividends, while holding $552 million in cash and marketable securities at quarter-end.

04—Continue

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