Yahoo Finance Why Teradyne (TER) Shares Are Falling Today
What Happened:
Shares of semiconductor testing company Teradyne (NASDAQ:TER) fell 15.3% in the afternoon session after the company reported second-quarter earnings results. Its revenue guidance for next quarter missed analysts' expectations. On the other hand, Teradyne recorded strong improvement in inventory levels, and its EPS outperformed Wall Street's estimates. The guidance seems to be weighing on shares, and the stock traded down as a result.
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What is the market telling us:
Teradyne's shares are quite volatile and over the last year have had 8 moves greater than 5%. But moves this big are very rare even for Teradyne and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 6 months ago, when the stock dropped 10% on the news that the company reported fourth-quarter results, with revenue coming in below Wall Street's expectations. Also, the company's revenue and EPS guidance for next quarter both missed analysts' expectations by a large amount. Management explained this, saying, "Looking into the new year (2024), we expect low tester utilization will impact demand in the first half of the year." Though, demand is expected to pick up incrementally in the rest of the year. Overall, this was a mixed quarter for Teradyne, with guidance that was particularly bad.
Teradyne is up 18.6% since the beginning of the year, but at $124.30 per share it is still trading 23.7% below its 52-week high of $163 from July 2024. Investors who bought $1,000 worth of Teradyne's shares 5 years ago would now be looking at an investment worth $2,224.
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