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Jul 02, 2023

Teradyne Q2 2023 Earnings Report

Teradyne's revenue and earnings surpassed the midpoint of Q2 guidance, with revenue reaching $684 million.

Key Takeaways

Teradyne reported Q2 2023 revenue of $684 million, a 19% decrease compared to Q2 2022. GAAP EPS was $0.73, and non-GAAP EPS was $0.79. The company returned $152 million to shareholders through share repurchases and dividends.

Revenue and earnings exceeded the mid-point of Q2 guidance.

Q2 2023 revenue was $684 million, reflecting a 19% decrease compared to Q2 2022.

Shareholders received $152 million through share repurchases and dividends in Q2 2023.

Semiconductor test shipments offset weaker robotics demand, and profits exceeded plan due to higher gross margins.

Total Revenue
$684M
Previous year: $841M
-18.6%
EPS
$0.79
Previous year: $1.21
-34.7%
Gross Profit
$402M
Previous year: $506M
-20.6%
Cash and Equivalents
$613M
Previous year: $572M
+7.2%
Free Cash Flow
$104M
Previous year: $69.7M
+48.5%
Total Assets
$3.39B
Previous year: $3.49B
-2.7%

Teradyne

Teradyne

Teradyne Revenue by Segment

Forward Guidance

Teradyne anticipates Q3 2023 revenue between $650 million and $710 million, with GAAP net income per diluted share of $0.57 to $0.77, and non-GAAP net income per diluted share of $0.61 to $0.81.

Positive Outlook

  • Test demand for DRR5 and HBM memory devices for data center applications remains strong.
  • SOC test demand for automotive applications is incrementally stronger.

Challenges Ahead

  • Order rates in robotics are expected to decline.
  • Customers are navigating slowing global industrial activity.
  • Customers are navigating macro-economic headwinds.

Revenue & Expenses

Visualization of income flow from segment revenue to net income