Why Teradyne, Inc. (NASDAQ: TER) stock is going gangbusters today

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Teradyne, Inc. (NASDAQ: TER) stock rose over 9.6% in the pre-market session of 23rd January, 2020 (as of 5:56 am GMT-5; Source: Google finance) after the company posted better than expected earnings for the fourth quarter of FY 19 & gave upbeat outlook for first-quarter. The company has reported fourth-quarter net income of $136.8 million, compared to $143.8 million, in the year-ago period. The company has delivered revenue and profits above plan in the fourth quarter on the back of higher than expected memory and wireless test demand combined with continued 5G infrastructure test demand. For the full year, the company had increased total company revenue by 9% and non-GAAP earnings by 21. Despite the headwinds in global industrial automation investment, Universal Robots posted the growth in the revenue by 6% for the year and MiR grew 43% on a pro-forma basis. In Q4, the company had strengthened the IA portfolio with the addition of AutoGuide and their innovative autonomous mobile forklifts and tuggers to the line-up of easy to deploy, safe, and fast ROI automation products.

TER in the fourth quarter of FY 19 has reported the adjusted earnings per share of 88 cents, beating the analysts’ estimates for the adjusted earnings per share of 79 cents, according to analysts surveyed by FactSet. The company had reported the adjusted revenue growth of 26 percent to $654.7 million in the fourth quarter of FY 19, beating the analysts’ estimates for revenue of $611.7 million. The company has delivered for the fourth quarter of 2019 the revenue of $439 million was in Semiconductor Test, $88 million in Industrial Automation (IA), $83 million in System Test, and $45 million in Wireless Test. The company has posted the GAAP net income for the fourth quarter of $136.8 million or $0.75 per diluted share and on a non-GAAP basis, Teradyne’s net income in the fourth quarter is of $152.7 million, or $0.88 per diluted share.

Teradyne expects first-quarter adjusted earnings to be in the range of 86 cents to 96 cents a share on revenue expected to be in the range of $670 million to $710 million, while analysts had forecast earnings of 64 cents a share on revenue of $560.4 million.

Additionally, the company has also increased the March 20-payable quarterly dividend 11% to 10 cents a share and approved a buyback of up to $1 billion in shares, of which a minimum of $250 million will be bought back in 2020.

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