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On Tuesday, Stifel analysts maintained their Hold rating on Teradyne (NASDAQ:TER) shares, with a consistent price target of $110.00. The decision came after Teradyne released its first-quarter results, which showed a 9% quarter-over-quarter decline in sales, aligning with Stifel’s projections and slightly surpassing the consensus. The company’s non-GAAP earnings per share (EPS) of $0.75 exceeded Stifel’s $0.65 estimate, attributed to stronger gross margins of 60.6%, compared to Stifel’s forecast of 59.0%.
The results indicated that semiconductor testing continues to dominate Teradyne’s sales, contributing to 79% of total revenue compared to 75% in the previous quarter. However, Teradyne’s robotics revenue showed a decrease of 30% quarter-over-quarter and 22% year-over-year, suggesting that the company’s target for more than 10% annual growth may need reassessment.
For the second quarter ending in June, Teradyne provided revenue guidance ranging from $610 million to $680 million, which represents a decrease of 1% to 11% from the previous quarter. This guidance midpoint of $645 million is slightly below Stifel’s estimate of $655 million. Teradyne had previously warned in mid-February that revenue might be flat to down by 10% quarter-over-quarter due to customer shipment delays. The reaffirmation of its second-quarter outlook, coupled with the reiterated caution regarding limited visibility for the second half of the year, indicates that the market’s current estimates for a mid-20% rebound in the second half compared to the first half may require adjustment.
Looking ahead, Teradyne had set a goal for a 5-10% year-over-year revenue increase by 2025. Stifel’s analysis falls on the conservative end of this range, aligning with Teradyne’s own expectations for the semiconductor test market’s growth of about 5%. In contrast, Teradyne’s peer Advantest remains optimistic, forecasting that the test total addressable market (TAM) will experience a mid-to-high single-digit increase in calendar year 2025.
In other recent news, Teradyne Inc . reported its first-quarter 2025 earnings, showcasing results that surpassed analyst expectations. The company announced an earnings per share (EPS) of $0.75, exceeding the forecasted $0.62, and revenue of $686 million, which also surpassed the anticipated $681.38 million. Despite these positive results, Teradyne’s stock experienced a premarket decline of 2.38%. The company attributed its revenue success to strong performance in its Semi Test division, which generated $543 million. Teradyne also maintained robust free cash flow of $98 million and continued its share repurchase program with $157 million in buybacks. Looking ahead, Teradyne provided guidance for the second quarter, projecting revenue between $610 million and $680 million. Analysts from TD Cowen noted the uncertainty in end market demand due to macroeconomic factors but expressed confidence in Teradyne’s long-term growth drivers, particularly in AI and electrification. The company remains focused on strategic investments to support future growth despite limited visibility beyond the second quarter.
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