Teradyne Inc (TER) Q4 2024 Earnings Call Highlights: Strong Revenue Growth Amid Market Challenges

GuruFocus.com01-31 15:30

Fourth Quarter Revenue: $753 million. Non-GAAP EPS (Q4): $0.95. Full Year Revenue (2024): $2.8 billion. Full Year Non-GAAP EPS (2024): $3.22. Free Cash Flow (2024): Over $470 million. Gross Margin (Q4...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTeradyne Inc (TER) Q4 2024 Earnings Call Highlights: Strong Revenue Growth Amid Market Challenges\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-01-31 15:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/teradyne-inc-ter-q4-2024-073035794.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Fourth Quarter Revenue: $753 million.\nNon-GAAP EPS (Q4): $0.95.\nFull Year Revenue (2024): $2.8 billion.\nFull Year Non-GAAP EPS (2024): $3.22.\nFree Cash Flow (2024): Over $470 million.\nGross Margin (Q4...</p>\n\n<a href=\"https://finance.yahoo.com/news/teradyne-inc-ter-q4-2024-073035794.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":null,"symbol_name":null,"start_time":0,"source_url":"https://finance.yahoo.com/news/teradyne-inc-ter-q4-2024-073035794.html","article_id":"2507931429","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2507931429","pubTimestamp":1738308635,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Memory Business Growth : 30% year over year.Q1 2025 Revenue Guidance: $660 to $700 million.Q1 2025 Non-GAAP EPS Guidance: $0.58 to $0.68.Full Year 2025 Gross Margin Guidance: 59% to 60%.Full Year 2025 OpEx Growth Guidance: 8% to 10% year over year.GuruFocus has detected 4 Warning Signs with TER.Teradyne Inc  achieved a 17% year-over-year growth in SOC and memory test revenue, driven by AI accelerator ASICs, networking, and HBM DRAM.Teradyne Inc  announced a strategic partnership with Infineon to accelerate its roadmap in the power semiconductor space, enhancing its position in the automotive and renewables market.A: Gregory Smith, CEO: Our outlook for low single-digit growth in share is driven by maintaining our 50% share in compute VIPs as the TAM grows, incremental improvement in mobile due to increasing complexity, and modest growth in automotive due to increased semiconductor content. In industrial, AI compute's power needs are indirectly driving demand. In memory, a gradual recove","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{},"translate_title":"泰瑞达(TER)2024年第四季度收益看涨期权亮点：在市场挑战中收入强劲增长","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TER":1},"content_text":"Fourth Quarter Revenue: $753 million.\nNon-GAAP EPS (Q4): $0.95.\nFull Year Revenue (2024): $2.8 billion.\nFull Year Non-GAAP EPS (2024): $3.22.\nFree Cash Flow (2024): Over $470 million.\nGross Margin (Q4): 59.4%.\nOperating Profit Rate (Q4): 22%.\nSemi Test Revenue (Q4): $561 million.\nSOC Revenue (Q4): $429 million.\nMemory Revenue (Q4): $112 million.\nRobotics Revenue (Q4): $98 million.\nMemory Business Growth (2024): 30% year over year.\nSOC and Memory Revenue Growth (2024): 17% year over year.\nRobotics Revenue (2024): $365 million.\nQ1 2025 Revenue Guidance: $660 to $700 million.\nQ1 2025 Non-GAAP EPS Guidance: $0.58 to $0.68.\nFull Year 2025 Gross Margin Guidance: 59% to 60%.\nFull Year 2025 OpEx Growth Guidance: 8% to 10% year over year.\n\n\nWarning! GuruFocus has detected 4 Warning Signs with TER.\n\nRelease Date: January 30, 2025\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nTeradyne Inc (NASDAQ:TER) achieved a 17% year-over-year growth in SOC and memory test revenue, driven by AI accelerator ASICs, networking, and HBM DRAM.\nThe company successfully diversified its customer base, reducing reliance on the mobile market and achieving a 50% market share in computing VIPs.\nTeradyne Inc (NASDAQ:TER) reported a 5% overall revenue growth in 2024, with an 8% growth excluding the divestiture of the DIS business.\nThe company generated over $470 million in free cash flow and increased earnings per share by 10% year over year.\nTeradyne Inc (NASDAQ:TER) announced a strategic partnership with Infineon to accelerate its roadmap in the power semiconductor space, enhancing its position in the automotive and renewables market.\n\n Negative Points \n\nThe industrial automation market remained weak, impacting Teradyne Inc (NASDAQ:TER)'s robotics business, which underperformed expectations.\nRobotics revenue was down slightly, with the business experiencing a 13% non-GAAP operating loss for both Q4 and the full year.\nThe memory test market is expected to be flat in 2025 due to customers absorbing capacity with higher productivity tools.\nTeradyne Inc (NASDAQ:TER) faced challenges in its wireless test business, with revenue down from 2023 due to a slower ramp of Wi-Fi 7.\nThe company anticipates a modest recovery in mobile, automotive, and industrial markets in the second half of 2025, indicating ongoing market uncertainties.\n\n Q & A Highlights \nQ: Can you expand on your outlook for low single-digit share growth in semi test and potential upside if noncompute businesses recover better than expected? A: Gregory Smith, CEO: Our outlook for low single-digit growth in share is driven by maintaining our 50% share in compute VIPs as the TAM grows, incremental improvement in mobile due to increasing complexity, and modest growth in automotive due to increased semiconductor content. In industrial, AI compute's power needs are indirectly driving demand. In memory, a gradual recovery in mobile and strong demand for DRAM in AI servers support low single-digit share growth.\nQ: On the robotics side, you're restructuring again. What gives you confidence this is the right path, and what's the timeframe for success? A: Gregory Smith, CEO: We believe we've made progress in a weak market, outperforming peers. The restructuring focuses on commercial aspects, aiming to help partners sell a broader product range and improve efficiency. We're consolidating go-to-market functions to enhance customer service and efficiency, aiming to sell more robots and improve operating margins.\nQ: Can you explain the partnership with Infineon and its benefits for both companies? A: Gregory Smith, CEO: The partnership allows Teradyne to accelerate its roadmap in power semiconductors, covering new device types and higher powers. Infineon benefits by focusing on chip design and production, while Teradyne commercializes Infineon's internal test capabilities, addressing a broader market.\nQ: What is your outlook for the 2-nanometer node and its impact on testers? A: Gregory Smith, CEO: We expect early production of 2-nanometer devices in late 2025, with bulk production in 2026. These devices require higher peak power and more tester memory, creating opportunities in ATE and system-level test spaces due to increased complexity.\nQ: How do you view the VIP test TAM growth and your ability to maintain a 50% share? A: Gregory Smith, CEO: Our VIP test TAM forecast is based on unit quantities and device complexity. We expect robust growth from existing customers and potentially new logos. We believe our product differentiation and customer relationships will help maintain our 50% share.\nQ: Can you provide more details on the revenue assumptions for your 2028 model? A: Sanjay Mehta, CFO: We expect test revenues to grow 12% to 17% and robotics 18% to 24%. Key drivers include AI-enabled SAM expansion, channel growth, and new product introductions. In semi test, we anticipate growth in compute, auto, and industrial segments, with system-level test as a long-term growth factor.\nQ: What is your view on the HBM test market for 2025 and 2026? A: Gregory Smith, CEO: Our view is based on customer forecasts and advanced capital planning. The timing of the HBM4 transition is a key factor. If it occurs earlier, it could pull in capacity needs from 2026 to 2025, impacting the TAM.\nQ: How are you de-risking the second half recovery in markets like mobile and auto-industrial? A: Sanjay Mehta, CFO: We see utilization tightening as upgrades fill underutilized capacity. We have a strong pipeline and expect broad-based recovery in the second half, driven by compute, auto, and industrial segments, along with end market recovery in industrial automation.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.30.2","shortVersion":"4.30.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2507931429"}