Teradyne (TER) Up 8.7% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Teradyne (TER). Shares have added about 8.7% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Teradyne due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Teradyne, Inc. before we dive into how investors and analysts have reacted as of late.Teradyne Q2 Earnings Top Estimates, Revenues Down Y/YTeradyne reported second-quarter 2025 non-GAAP earnings of 57 cents per share, which beat the Zacks Consensus Estimate by 5.56% but plunged 33.7% year over year. The figure came in above the mid-point of Teradyne’s guidance range.Revenues of $652 million beat the Zacks Consensus Estimate by 0.89% but declined 10.7% year over year. The figure also came in above the mid-point of Teradyne’s guidance range.TER’s Q2 Top-line DetailsRevenues from Semiconductor Test platforms, System Test business, Robotics and Product Test were $492 million (75.5% of total revenues), $75 million (11.5%) and $85 million (13%), respectively.In the second quarter, Teradyne reported a non-GAAP gross margin of 57.3%, which contracted 110 basis points (bps) year over year.In the reported quarter, selling and administrative expenses increased 2.1% year over year to $157.8 million. As a percentage of revenues, selling and marketing expenses were 24.2%, up 300 bps year over year.Engineering and development expenses increased 5.9% year over year to $118.4 million. As a percentage of revenues, engineering and development expenses were 18.2%, up 280 bps year over year.Non-GAAP operating income declined 38.5% year over year to $98.2 million. As a percentage of revenues, the operating margin contracted 680 bps year over year to 15.1%.TER’s Balance Sheet & Cash FlowAs of June 29, 2025, Teradyne’s cash and cash equivalents (including marketable securities) were $367.9 million, lower than $507.8 million as of March 30, 2025.In the reported quarter, net cash provided by operating activities was $182.1.Teradyne’s board authorized an expansion of the company’s share repurchase program, increasing the target to $1 billion by the end of 2026.TER’s Q3 GuidanceFor the third quarter of 2025, Teradyne expects revenues between $710 million and $770 million.  Non-GAAP earnings are expected to be between 69 cents and 87 cents per share. How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates revision.The consensus estimate has shifted -14.66% due to these changes.VGM ScoresAt this time, Teradyne has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Teradyne has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerTeradyne belongs to the Zacks Electronics - Miscellaneous Products industry. Another stock from the same industry, Flex (FLEX), has gained 5.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.Flex reported revenues of $6.58 billion in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $0.72 for the same period compares with $0.51 a year ago.For the current quarter, Flex is expected to post earnings of $0.75 per share, indicating a change of +17.2% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Flex. Also, the stock has a VGM Score of A.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teradyne, Inc. (TER): Free Stock Analysis Report Flex Ltd. (FLEX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks