Boston, MA 04/25/2014 (wallstreetpr) – Teradyne, Inc. (NYSE:TER) is a $3.5 billion business organization that provides semiconductor and wireless testing equipment. The company reported first quarter earnings that exceeded the expectation of most analysts. In addition to a strong first quarter results, the managed issued prediction for the current quarter that all but suggests a business that is fast improving.
The management expects revenue in the second quarter to come in between $460 and $490 million. That will be up about 48 percent sequentially if the mid-point of the estimate is achieved. The non-GAAP earnings are expected to come in the range of $0.36 and $0.43 per share. The GAAP earnings are predicted to come within the range of $0.29 and $0.36 per share.
The strong predictions for the second quarter confirm a good turnaround pace in the company.
Teradyne, Inc. (NYSE:TER) expects to return more value to shareholders as its cash position improves. It recently initiated a dividend payment whereby it plans to pay out 6 cents per share. The initiation of dividend not only reveals a shareholder oriented management, but also the ability to generate strong cash flow.
First quarter data
Teradyne, Inc. (NYSE:TER) reported earnings per share of $0.11, topping Zacks consensus estimate of $0.07. Revenue in the quarter was up about 13 percent sequentially and about 15 percent year-over-year to $321 million. The latest revenue exceeded Zacks estimate of $318 million. Moreover, the revenue was in-line with management’s prediction that ranged between $300 and $330 million for the quarter.
The strong first quarter results were linked to strong sales registered throughout the company’s operating segments. The highest revenue contributor in the segment was semiconductor testing business. About 82 percent of the total revenue in the latest quarter came from semiconductor testing segment. However, all the sectors witnessed positive revenue growth.
Remaining strong
Achieving revenue growth and curbing expenses is the name of the game at Teradyne, Inc. (NYSE:TER). The company expects to save more money that it can return to shareholders and put into strategic investments.
