Teradyne Stock Plummets 38.92% Despite Strong Q1 Earnings and Topping Revenue Estimates

On May 13, 2025, Teradyne (TER) closed at $83.06, with a trading volume of $239 million, marking a 38.92% decrease from the previous day. The stock has been on a bullish run, rising 2.22% and maintaining an upward trend for five consecutive days, with a total increase of 14.62% over the past five days.

Teradyne, Inc. is a global leader in the design, development, and manufacture of automated test equipment and advanced robotics systems. The company operates through several key segments, including Semiconductor Test and Robotics, which contribute significantly to its revenue and market presence.

Despite delivering strong financial results for the first quarter of 2025, Teradyne's stock experienced a decline. The company reported revenue of $685.7 million, a 14.3% year-over-year increase, driven by robust performance in the Semiconductor Test segment, particularly in System on a Chip (SoC) for mobile applications. This surpassed analysts' estimates of $683.9 million. Adjusted earnings per share (EPS) came in at $0.75, a 47.1% increase from the prior year and beating analysts' estimates by nearly 23%.

For the second quarter of 2025, Teradyne expects revenue between $610 million and $680 million, with adjusted EPS projected to be between $0.41 and $0.64. However, the stock declined due to the company's decision not to reaffirm expectations beyond the second quarter. Analysts expect TER's adjusted EPS to decline 1.2% year-over-year to $3.18 for the current fiscal year ending in December 2025. Despite this, Teradyne has a solid history of exceeding earnings estimates.

Among the 15 analysts covering the stock, the consensus rating is a "Moderate Buy," with 10 "Strong Buy" ratings, three "Holds," one "Moderate Sell," and one "Strong Sell." This configuration is slightly less bullish than three months ago, when there were 12 "Strong Buy" ratings. Susquehanna analyst Mehdi Hosseini lowered TER’s price target to $133 but maintained a "Positive" rating on the stock. The mean price target of $99.50 implies a 19.8% premium to current price levels, while the Street-high target of $137 suggests a 64.9% upside potential.

Teradyne was recently recognized by VETS Indexes as a 2025 Recognized Employer, highlighting its commitment to veteran employment and support. This recognition further solidifies Teradyne's reputation as a leading employer in the technology and robotics sectors.