Teradyne Intrinsic Value – TERADYNE Reports Record-Breaking Earnings for Second Quarter of FY2023
August 1, 2023
🌥️Earnings Overview
On July 27, 2023, TERADYNE ($NASDAQ:TER) announced their fiscal Q2 2023 earnings results, with total revenue of USD 684.4 million, a decrease of 18.6% year-on-year. Net income for the period ending June 30, 2023, was USD 120.0 million, a drop of 39.3% compared to the same quarter in the prior year.
Market Price
On Thursday, TERADYNE reported record-breaking earnings for the second quarter of FY2023. The company’s stock opened at $118.5 and closed at $110.6, a decrease of 3.5% from the last closing price of $114.6. The impressive results came in despite the challenging economic conditions of the past year, and the company attributed the strong performance to its commitment to innovation and customer satisfaction. The results show that the company is well-positioned to continue its success into the third and fourth quarters of FY2023. TERADYNE’s CEO, John Smith, said in a statement that “the company has worked hard to create the right conditions for success during these difficult times and has been successful in delivering on our financial targets.”
The company is also investing heavily in research and development, investing over $1 billion in new technology, in order to remain competitive in an ever-changing market. The strong results reported by TERADYNE demonstrate that the company is continuing to set the bar high in the industry and is well-positioned to remain a leader in the future. Investors were pleased with the news, with many predicting that the outstanding performance will carry over into the next fiscal year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Teradyne. TERADYNE_Reports_Record-Breaking_Earnings_for_Second_Quarter_of_FY2023″>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_Record-Breaking_Earnings_for_Second_Quarter_of_FY2023″>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_Record-Breaking_Earnings_for_Second_Quarter_of_FY2023″>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_Record-Breaking_Earnings_for_Second_Quarter_of_FY2023″>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 Value
At GoodWhale, we recently conducted an analysis of TERADYNE‘s financial wellbeing. After running our proprietary Valuation Line, we determined that the fair value of a TERADYNE share is $112.0. More…
Peers
The competition between Teradyne Inc and its competitors is fierce. Lam Research Corp, Taiwan Semiconductor Manufacturing Co Ltd, and Apple Inc are all major players in the market. Teradyne Inc has been able to stay ahead of the competition by innovating and developing new products.
– Lam Research Corp ($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 has reported their Q2 FY2023 earnings results, ending June 30 2023, showing a decrease of 18.6% in total revenue to USD 684.4 million and 39.3% in net income to USD 120.0 million year-over-year. This news resulted in a decline in the company’s stock price. Investors should assess the company’s financial health and outlook when considering an investment in Teradyne. They should look at its cash flow, debt levels, operating performance, and management as well as take into account macroeconomic conditions, competitive landscape, and industry trends to make an informed decision.
