•
Dec 31, 2021

Teradyne Q4 2021 Earnings Report

Teradyne's Q4 2021 revenue increased, driven by growth in both test and industrial automation businesses.

Key Takeaways

Teradyne reported Q4 2021 revenue of $885 million, a 17% increase from Q4 2020. GAAP EPS was $1.29, and non-GAAP EPS was $1.37. The company's test and industrial automation businesses both experienced double-digit revenue growth.

Revenue reached $885 million, reflecting a 17% increase compared to Q4 2020.

GAAP EPS stood at $1.29, while non-GAAP EPS reached $1.37.

Semiconductor Test revenue was $592 million, System Test revenue was $127 million, Wireless Test revenue was $52 million, and Industrial Automation revenue was $113 million.

The board of directors increased the quarterly cash dividend by 10% to $0.11 per share.

Total Revenue
$885M
Previous year: $759M
+16.6%
EPS
$1.37
Previous year: $1.1
+24.5%
Gross Profit
$527M
Previous year: $450M
+17.2%
Cash and Equivalents
$1.12B
Previous year: $914M
+22.8%
Free Cash Flow
$302M
Previous year: $222M
+35.8%
Total Assets
$3.81B
Previous year: $3.65B
+4.3%

Teradyne

Teradyne

Teradyne Revenue by Segment

Forward Guidance

Teradyne expects Q1 2022 revenue between $700 million and $770 million, with GAAP net income per diluted share of $0.71 to $0.93 and non-GAAP net income per diluted share of $0.76 to $0.98.

Positive Outlook

  • Strong long-term test and automation demand trends are in place.
  • High growth is expected to continue in Industrial Automation in 2022.
  • Favorable global economic trends are expected.
  • Automation products provide powerful value to customers.
  • Expect to repurchase a minimum of $750 million in shares in 2022

Challenges Ahead

  • A slower technology transition in one of the major end markets is expected.
  • This will result in lower System-on-a-Chip test demand for Teradyne in 2022.
  • The slower demand is expected before accelerating again during the ramp of 3nm production in 2023.
  • The COVID-19 pandemic has adversely impacted the Company’s results of operations, including increased costs company-wide and constraints within the Company’s supply chain.
  • Uncertainty in Teradyne’s markets resulted in a significant decrease in demand for certain Teradyne products and could continue to impact demand for an uncertain period of time.

Revenue & Expenses

Visualization of income flow from segment revenue to net income