Teradyne (TER, Financials) shares fell 17.2% to $86.90 on Tuesday as of 11:46 a.m. GMT-4 after the company issued revised business guidance, citing near-term volatility in its SemiTest business and uncertainty surrounding tariffs and trade restrictions.

• Warning! GuruFocus has detected 4 Warning Signs with TER.

Maintaining its first-quarter 2025 projection, the company's adjusted earnings per share ranged between $0.58 to $0.68, with a midpoint of $0.63 in line with the consensus expectation of $0.62. Versus the analyst forecast of $681.07 million, revenue is expected to be between $660 million and $700 million with a median of $680 million.

Teradyne reduced its second quarter sales estimate, now seeing flat to a 10% drop from the prior quarter. The business before estimated growth ranging from +5% to -10%. Customers reviewing budgets in reaction to the Trump administration tariffs calls for a modification.

From previous high-teens projections, full-year 2025 income is now expected to rise between 5% and 10%. The business predicts profits per share of around $3.50, less than what analysts project$4.20. Though it is going toward the lower end of the prior $5.50 to $7.50 EPS range, guidance for 2026 is same. The corporation reiterated its financial model for 2028.

First semiconductor company to disclose client budget changes resulting from tariffs is Teradyne. Earlier in the week, more general semiconductor stocks dropped on worries of an economic downturn connected to trade restrictions. Citing significant program successes, CEO Greg Smith recognized market obstacles including delays in initiatives moving from 2024 to 2025, but he showed optimism in 2025 growth expectations.