(Reuters) – Teradyne forecast fourth-quarter profit and revenue above Wall Street estimates on Wednesday, owing to accelerated demand for its semiconductor-testing equipment, sending its shares up 2.5% in extended trading.
Growing demand from memory chips and cloud compute firms that offer AI capabilities is benefiting Teradyne, as the chip-testing technology provider helps ensure the performance of semiconductors, electronic systems and wireless devices.
The company forecast fourth-quarter revenue of $710 million to $760 million, with the mid-point above analysts’ average estimate of $736.5 million, according to data compiled by LSEG.
Teradyne forecast adjusted earnings per share for the fourth quarter in the range of 80 cents to 97 cents, compared with estimates of 88 cents.
The company, which counts Qualcomm and Texas Instruments among its customers, designs and develops technology to test chips and electronic equipment. It also sells robotic systems to customers in the manufacturing sector.
The company’s revenue for the third quarter rose about 5% to $737 million from a year ago, compared with estimates of $716.4 million.
On an adjusted basis, the company earned 90 cents per share in the quarter ended Sept. 29, compared with estimates of 78 cents per share.
(Reporting by Priyanka.G in Bengaluru; editing by Alan Barona)
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