• Home
  • Stock News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
Dividend Stocks Report
No Result
View All Result
Home Stock News

Teradyne Earnings Were Great. The Stock Is Plummeting on the Guidance.

by
January 27, 2022
in Stock News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter
Text size

Dreamstime

Stock in robotics and semiconductor test equipment maker Teradyne was plummeting after the company reported better-than-expected fourth-quarter numbers. The fourth quarter isn’t the issue, investors are focused on the outlook.

Related Posts

Home sales spike 14.5% in February as the median price drops for the first time in over a decade

Cathie Wood says rising rates hit her strategy like an earthquake and cyclical stocks are next

Potentially deadly fungus is spreading at an ‘alarming rate,’ CDC says

Bitcoin, ether build on recent gains as investors await Fed rate hike decision

Shares were down 26% to $106.15. The S&P 500 and the Dow Jones Industrial Average were up 1.8% and 1.6%, respectively.

Teradyne (ticker: TER) reported $1.37 in per-share earnings from $885 million in sales. Wall Street was looking for profits of $1.29 a share from $868 million in sales.

Teradyne guided for 88 cents in per-share earnings from about $735 million in sales for the first quarter of 2022. Wall Street was looking for earnings of $1.30 a share and $878 million in sales. It’s a wide gap. What’s more, the company said sales in the first half of 2022 will fall 15% to 20% “due to push out of 3 [nanometer] technology ramp.”

The 3 nanometer, essentially, refers to the size of the node on a semiconductor. Smaller means more nodes and faster chips.

Management focused on the long term in the company’s news release.

“We enter 2022 with strong long-term test and automation demand trends in place and we’ve increased the mid-point of the revenue and non-GAAP earnings per share estimates in our 2024 earnings model to $4.9 billion and $8 respectively,” said CEO Mark Jagiela. Teradyne generated about $6 in per-share earnings from $3.7 billion in sales for all of 2021.

“However, in 2022, we expect a slower technology transition in one of our major end markets to result in lower System-on-a Chip test demand.” That’s the 3 nanometer problem.

Stock in competitor Advantest (6857.Japan) was off 7% in overseas trading as investors digested what Teradyne’s warning means for others.

Coming into Thursday trading, Teradyne stock had gained about 4% over the past 12 months.

Write to Al Root at allen.root@dowjones.com

Next Post

Apple revenue pops 11% to $123.9 billion, Cook says supply chain improving

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Popular Posts

Stock News

Bitcoin, ether build on recent gains as investors await Fed rate hike decision

by
March 21, 2023
0

Pedestrians walk past an advertisement displaying a Bitcoin cryptocurrency token on February 15, 2022 in Hong Kong, China. Anthony Kwan...

Read more

Bitcoin, ether build on recent gains as investors await Fed rate hike decision

Potentially deadly fungus is spreading at an ‘alarming rate,’ CDC says

Cathie Wood says rising rates hit her strategy like an earthquake and cyclical stocks are next

Home sales spike 14.5% in February as the median price drops for the first time in over a decade

GameStop stock soars after retailer posts first quarterly profit in two years

Bill Gates says OpenAI’s GPT is the most important advance in technology since 1980

Load More

All rights reserved by www.dividendstocksreport.net

  • Home
  • Stock News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
  • Home
  • Stock News
  • Privacy Policy
  • Email Whitelisting

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.