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Dreamstime
Stock in robotics and semiconductor take a look at gear maker
Teradyne
was plummeting after the corporate reported better-than-expected fourth-quarter numbers. The fourth quarter isn’t the difficulty, buyers are targeted on the outlook.
Shares have been down 26% to $106.15. The
S&P 500
and the
Dow Jones Industrial Average
have been up 1.8% and 1.6%, respectively.
Teradyne (ticker: TER) reported $1.37 in per-share earnings from $885 million in gross sales. Wall Street was on the lookout for income of $1.29 a share from $868 million in gross sales.
Teradyne guided for 88 cents in per-share earnings from about $735 million in gross sales for the primary quarter of 2022. Wall Street was on the lookout for earnings of $1.30 a share and $878 million in gross sales. It’s a large hole. What’s extra, the corporate stated gross sales within the first half of 2022 will fall 15% to twenty% “due to push out of 3 [nanometer] technology ramp.”
The 3 nanometer, primarily, refers back to the measurement of the node on a semiconductor. Smaller means extra nodes and sooner chips.
Management targeted on the long run within the firm’s information launch.
“We enter 2022 with strong long-term test and automation demand trends in place and we’ve increased the mid-point of the revenue and non-GAAP earnings per share estimates in our 2024 earnings model to $4.9 billion and $8 respectively,” stated CEO Mark Jagiela. Teradyne generated about $6 in per-share earnings from $3.7 billion in gross sales for all of 2021.
“However, in 2022, we expect a slower technology transition in one of our major end markets to result in lower System-on-a Chip test demand.” That’s the three nanometer downside.
Stock in competitor
Advantest
(6857.Japan) was off 7% in abroad buying and selling as buyers digested what Teradyne’s warning means for others.
Coming into Thursday buying and selling, Teradyne inventory had gained about 4% over the previous 12 months.
Write to Al Root at allen.root@dowjones.com