Benzinga | Apr 26, 2021 10:18AM EDT

Teradyne's Earnings Outlook

Teradyne (NASDAQ:TER) will be releasing its next round of earnings this Tuesday, April 27. For all of the relevant information, here is your guide for Tuesday's Q1 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Teradyne EPS is expected to be around $1.05, according to sell-side analysts. Sales will likely be near $760.42 million. Teradyne reported a profit of $1.0 per share when it published results during the same quarter last year. Sales in that period totaled $704.36 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street consensus estimate for earnings would represent a 5.0% increase for the company. Revenue would be have grown 7.96% from the same quarter last year. Teradyne's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 1.01 1.12 1.02 0.88EPS Actual 1.10 1.18 1.33 1Revenue Estimate 721.14 M 770.29 M 752.03 M 678.81 MRevenue Actual 758.97 M 819.00 M 838.66 M 704.36 M

Stock Performance

Shares of Teradyne were trading at $131.53 as of April 23. Over the last 52-week period, shares are up 110.16%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Teradyne is scheduled to hold the call at 08:30:00 ET and can be accessed here.