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Jul 04, 2021

Teradyne Q2 2021 Earnings Report

Teradyne's Q2 2021 earnings were reported, with revenue increasing by 29% year-over-year and GAAP earnings per share growing by 68%.

Key Takeaways

Teradyne reported a strong second quarter in 2021, with revenue reaching $1.086 billion, a 29% increase compared to Q2 2020. GAAP EPS was $1.76, and non-GAAP EPS was $1.91. The company saw growth in both its Test and Industrial Automation segments.

Revenue for Q2 2021 was $1,086 million, up 29% from Q2 2020.

GAAP earnings per share for Q2 2021 grew 68% from Q2 2020.

Non-GAAP earnings per share for Q2 2021 increased by 44% from Q2 2020.

Test revenue increased by 27% year-over-year, driven by Semiconductor Test strength.

Total Revenue
$1.09B
Previous year: $839M
+29.5%
EPS
$1.91
Previous year: $1.33
+43.6%
Gross Profit
$647M
Previous year: $471M
+37.2%
Cash and Equivalents
$954M
Previous year: $725M
+31.6%
Free Cash Flow
$172M
Previous year: $176M
-2.3%
Total Assets
$4B
Previous year: $3.25B
+23.1%

Teradyne

Teradyne

Teradyne Revenue by Segment

Forward Guidance

Teradyne anticipates continued strong demand from both Test and Industrial Automation end markets. At the mid-point of Q3 2021 guidance, sales are expected to grow 12%, with GAAP and non-GAAP earnings per share growing 7% and 20%, respectively, from Q3 2020 levels.

Positive Outlook

  • Revenue of $880 million to $960 million
  • GAAP net income per diluted share between $1.17 and $1.41
  • Excluding acquired intangible assets amortization of $0.03
  • Excluding non-cash convertible debt interest of $0.02
  • Convertible share adjustment of $0.08 to $0.09

Challenges Ahead

  • Excluding acquired intangible assets amortization
  • Excluding non-cash convertible debt interest
  • Tax effect of non-GAAP adjustments
  • Global pandemic of the novel strain of the coronavirus (COVID-19)
  • The impact of U.S. Department of Commerce or other government agency regulations relating to Huawei and HiSilicon

Revenue & Expenses

Visualization of income flow from segment revenue to net income