Key Points
Teradyne's Q2 results were far better than Wall Street expected.
The company's forward guidance also dramatically exceeded the average analyst estimates.
The stock is still in the green today, but its retreated from its high in the daily session as investors weigh macroeconomic risks.
Teradyne (NASDAQ: TER) stock is in the green today despite sell-offs for the broader market. The company's share price was up 3.3% as of 1 p.m. ET despite a 0.9% decline for both the S&P 500 and the Nasdaq Composite.
Teradyne published its second-quarter results after the market closed yesterday, postings sales and earnings that beat the market's expectations and issuing encouraging forward guidance. The stock had been up as much as 16.1% earlier in the day's trading, but it's given up most of its post-earnings gains as investors moved to take profits and bearish momentum for the broader market intensified.
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Teradyne delivered a blowout Q2 report
In the second quarter, Teradyne recorded non-GAAP (adjusted) earnings per share of $2.47 on revenue of $1.33 billion. The company's adjusted earnings per share beat the average analyst estimate by $0.42, and its sales for the period surpassed the average analyst forecast by roughly $110 million. Revenue rose roughly 104% year over year in the quarter thanks in large part to strong demand for memory chip solutions, and adjusted earnings per share soared compared to the per-share profit of $0.57 in last year's quarter.
Teradyne's forward guidance also crushed expectations
As good as the company's Q2 beats were, the company's guidance for Q3 was even stronger compared to expectations. The company is targeting revenue between $1.2 billion and $1.3 billion in the current quarter, which significantly exceeded the average Wall Street analyst estimate's target for sales of roughly $1.03 billion. Meanwhile, guidance for adjusted earnings per share between $1.85 and $2.15 crushed the average forecast for adjusted per-share earnings of $1.44. The stock has given up some ground following its surge in today's session, but its Q2 results and forward guidance look very encouraging.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Teradyne. The Motley Fool has a disclosure policy.