Teradyne TER is scheduled to report its fourth-quarter 2024 results on Jan. 29, 2025.

For the fourth quarter, TER expects revenues between $710 million and $760 million. It anticipates non-GAAP earnings per share (EPS) between 80 cents and 97 cents.

The Zacks Consensus Estimate for fourth-quarter EPS is pegged at 90 cents, unchanged in the past 30 days. This suggests a 13.91% increase from the figure reported in the year-ago quarter.

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The Zacks Consensus Estimate for sales is pegged at $740.68 million, indicating an increase of 10.45% from the year-ago quarter’s reported value.

TER’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 23.20%.

Let’s see how things have shaped up for the upcoming announcement:

Factors to Note

Teradyne’s fourth-quarter 2024 performance is expected to have benefited from strong demand for AI applications in semiconductor testing and the anticipated growth in the robotics segment.

The continued strength in AI-driven demand, particularly in ADAS (Advanced Driver Assistance Systems), compute networking and HBM (High Bandwidth Memory), is expected to have boosted TER’s performance in the fourth quarter. The demand for AI applications is contributing significantly to both memory and compute sectors.

Teradyne expects a significant increase in the Total Addressable Market for memory tests, with an expected growth of $1.4 billion in the to-be-reported quarter, driven mainly by stronger demand for HBM. The upside is expected to have contributed positively to Teradyne’s performance in the fourth quarter.

Teradyne’s Advanced Robotics business is expected to have reflected sequential growth in the to-be-reported quarter, particularly from new product launches like the AI-powered MiR1200 Pallet Jack and the ongoing expansion of high-payload cobots (UR20 and UR30). The company aims for 5-10% robotics growth in 2024.

Growth in Teradyne’s OEM solutions channel for Universal Robots is expected to continue, with OEM revenues up more than 50% year over year. The company also plans to continue its focus on expanding this channel. The expansion of OEM partners using cobots in AI-based logistics solutions is expected to have further boosted Robotics revenues in the to-be-reported quarter.

However, excess inventory is expected to have impacted semiconductor growth negatively and may have been a significant challenge for the company.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Teradyne has an Earnings ESP of 0.00% and sports a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Bill Holdings BILL has an Earnings ESP of +29.71% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Bill Holdings’ shares have gained 17.4% in the trailing 12 months. BILL is set to report its second-quarter fiscal 2025 results on Feb. 6.

AMETEK AME has an Earnings ESP of +0.54% and a Zacks Rank of 2 at present.

AMETEK shares have gained 13.7% in the trailing 12 months. AME is set to report its fourth-quarter 2024 results on Feb. 4.

CyberArk Software CYBR has an Earnings ESP of +2.71% and a Zacks Rank of 2 at present.

CyberArk Software shares have surged 52.4% in the trailing 12 months. CYBR is set to report its fourth-quarter 2024 results on Feb. 13.

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