Boston, MA 07/26/2013 (wallstreetpr) – Teradyne Inc (NASDAQ:TER), is down 4.5% to $16.5 from previous days close of $17.29. The market reaction is in conjunction with the weak Q2 numbers reported by the company on Wednesday 24th July 2013. In anticipation to weaker numbers, the share prices have seen a downside of close to 11% in last 3 trading sessions.
The Net profit for the quarter ending June 13 is down to $66.56 million ($ 0.28 per share) as compared to $111.39 million ($ 0.49 per share) in the same period last year. The lower income is on account of 22% decline in revenue from $548.28 same period previous year to $428.89 million in the current quarter.
Inspite of weak numbers reported in Q2, company beats the market anticipation; presently the stock is trading close to its 52 week high with 90 day average daily volume being traded is 2 million shares. 15 analysts polled by Reuters expect the Q3 earnings in the range of $ 0.32 – $ 0.40 per share.
Bookings in Q2 FY 13 were $ 474 million with reasonable improvements in growth expected in Semi-conductor and wireless test business, the guidance for Q3 earnings are being given by the company at earnings level of $ 425 to $465 which is diluted EPS of $ 0.23 to $ 0.31. The semi-conductor test segment of business grew 40% in second quarter.
The future order book is strengthening with market opportunities opening wide as we approach Q3.
Teradyne has partnered with Acetec’s new production test facility in Zhen Jiang, China. This partnership will enable Teradyne to expand its operations in China.
Another important deal with Hewlett- Packard has been recently announced. The Massachusetts based leading provider of automated equipment for Semi-conductor testing will deploy host of networking solutions to enhance IT infrastructure of HP.
