S&P 500 newcomer Teradyne’s Q3 sales up 41%


Shares of Teradyne Inc. rose nearly 5% in the extended session Tuesday after the semiconductor-equipment manufacturer, recently added to the S&P 500, beat Wall Street expectations for its third quarter.

Teradyne
TER,
+1.46%
said it earned $222.7 million, or $1.21 a share, in the quarter, compared with 75 cents a share in the year-ago period.

Adjusted for one-time items, the company earned $1.18 a share, compared with 77 cents a share a year ago. Sales rose 41% to $819 million, the company said.

Analysts polled by FactSet expected the company to report adjusted earnings of $1.12 a share on sales of $786 million.

The company pinned the beat on “record memory and storage test shipments along with strong system on a chip (SOC) test demand for mobility and compute devices.”

Teradyne said it expects its 2020 sales to grow more than 33% to more than $3 billion, and its non-GAAP EPS to grow 57% to $4.50.

The company guided for revenue between $680 million and $740 million for the fourth quarter, and an adjusted profit between 90 cents a share and $1.06 a share.

Teradyne last month was added to the S&P 500 index
SPX,
+0.47%
alongside Etsy Inc.
ETSY,
-2.41%
and Catalent Inc.
CTLT,
+2.08%.
The benchmark index disappointed those who hoped Tesla Inc.
TSLA,
-2.06%
would join the benchmark as well.



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