Why Teradyne Stock Jumped 10.8% This Morning
Shares of Teradyne (NASDAQ: TER) rose as much as 10.8% early Thursday morning, boosted by a strong fourth-quarter earnings report. The maker of automatic testing tools used by manufacturers of semiconductors, circuit boards, and wireless networking modules crushed Wall Street's expectations, set optimistic targets for the next quarter, and added $1 billion to its share buyback program.
Teradyne's fourth-quarter sales rose 26% year over year, landing at $655 million. Adjusted earnings increased by 40% to $0.88 per diluted share. Your average analyst would have settled for earnings near $0.79 per share on revenue in the neighborhood of $612 million.
Looking ahead, management set its first-quarter earnings guidance at roughly $0.91 per share, assuming revenue of approximately $690 million. For this period, Wall Street had been expecting earnings closer to $0.62 per share on sales near $551 million.
Source Fool.com
