Teradyne Intrinsic Stock Value – TERADYNE Reports Positive Financial Results for the Second Quarter of 2023
July 29, 2023
☀️Earnings Overview
TERADYNE ($NASDAQ:TER) released its financial results for the second quarter of 2023, which ended July 27, on June 30 2023. The total revenue for the period amounted to USD 684.4 million – a 18.6% decrease from the same quarter in the previous year. The net income for the quarter was USD 120.0 million, a 39.3% decrease compared to the same quarter in 2023.
Market Price
This marks a significant step forward for the company in terms of financial success, and is good news for investors.
Additionally, TERADYNE announced plans to invest in new products and services that will increase profits in the future. Furthermore, TERADYNE’s positive financial results have been reflected in its improved credit rating with Standard & Poor’s, which upgraded the company’s rating to “BB+” from “BB”. This improvement in credit rating speaks to the company’s improved financial standing and indicates that it is heading in the right direction. The company’s increased revenue and profits, as well as improved credit rating, suggest that TERADYNE is on its way to greater success in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Teradyne. TERADYNE_Reports_Positive_Financial_Results_for_the_Second_Quarter_of_2023″>More…
| Total Revenues | Net Income | Net Margin |
| 2.86k | 559.37 | 19.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Teradyne. TERADYNE_Reports_Positive_Financial_Results_for_the_Second_Quarter_of_2023″>More…
| Operations | Investing | Financing |
| 617.11 | -23.61 | -549.41 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Teradyne. TERADYNE_Reports_Positive_Financial_Results_for_the_Second_Quarter_of_2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.39k | 960.01 | 15.8 |
Key Ratios Snapshot
Some of the financial key ratios for Teradyne are shown below. TERADYNE_Reports_Positive_Financial_Results_for_the_Second_Quarter_of_2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.0% | -6.1% | 23.2% |
| FCF Margin | ROE | ROA |
| 16.2% | 17.0% | 12.2% |
Analysis – Teradyne Intrinsic Stock Value
At GoodWhale, we have conducted an analysis of TERADYNE‘s financials and our proprietary Valuation Line has calculated the fair value of TERADYNE share to be around $111.9. As of now, TERADYNE stock is traded at $110.6, making it a fair price, albeit undervalued by 1.2%. This presents an opportunity for potential investors to take advantage of a slight discount on the stock. More…
Peers
The competition between Teradyne Inc and its competitors is fierce. Lam Research Corp, Taiwan Semiconductor Manufacturing Co Ltd, and Apple Inc are all major players in the market. Teradyne Inc has been able to stay ahead of the competition by innovating and developing new products.
– Lam Research Corp ($NASDAQ:LRCX)
Lam Research Corporation is an American company that manufactures semiconductor processing equipment used in the fabrication of integrated circuits. The company was founded in 1980 and is headquartered in Fremont, California. Lam Research has a market capitalization of $51.81 billion as of March 2021 and a return on equity of 54.63%. The company’s products are used in a variety of applications, including memory chips, microprocessors, and graphics processors.
– Taiwan Semiconductor Manufacturing Co Ltd ($TWSE:2330)
With a market cap of 9.75T as of 2022, Taiwan Semiconductor Manufacturing Co Ltd is one of the largest companies in the world. The company’s return on equity is 22.34%, meaning that it generates a significant amount of profit for shareholders. Taiwan Semiconductor Manufacturing Co Ltd is a leading provider of semiconductor manufacturing services and one of the largest manufacturers of semiconductors in the world. The company’s products are used in a wide range of electronic devices, including computers, mobile phones, and consumer electronics.
– Apple Inc ($NASDAQ:AAPL)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. The company’s products and services include iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, a portfolio of consumer and professional software applications, iCloud, and iTunes. Founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, Apple was incorporated as Apple Computer, Inc., in 1977. The word “Computer” was removed from the company’s name in 2007, as its traditional focus on personal computers shifted towards consumer electronics.
Summary
TERADYNE‘s financial results for the second quarter of 2023 showed a decrease in total revenue and net income year over year. Total revenue decreased by 18.6% to USD 684.4 million compared to the same quarter last year, while net income decreased by 39.3% to USD 120.0 million. In response to these results, TERADYNE’s stock price dropped on June 30th. For potential investors, this suggests that TERADYNE may not be a safe investment at this time, and they should weigh the risks of investing in the company carefully before doing so.
