Investors in Teradyne, Inc. (NASDAQ:TER) had a good week, as its shares rose 5.0% to close at US$74.89 following the release of its first-quarter results. The result was positive overall - although revenues of US$686m were in line with what the analysts predicted, Teradyne surprised by delivering a statutory profit of US$0.61 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.NasdaqGS:TER Earnings and Revenue Growth April 30th 2025

Taking into account the latest results, the current consensus from Teradyne's 17 analysts is for revenues of US$2.98b in 2025. This would reflect a modest 2.5% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to decline 11% to US$3.21 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.98b and earnings per share (EPS) of US$3.22 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Teradyne

The consensus price target fell 6.4% to US$104, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Teradyne at US$155 per share, while the most bearish prices it at US$69.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Teradyne's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.3% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 2.6% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 16% per year. Although Teradyne's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

Story Continues

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Teradyne's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Teradyne going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Teradyne Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock,  here.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

View Comments