Here is why Teradyne Inc. (TER) stock plunged in the after-hours on Wednesday?

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SBUX Stock
SBUX Stock

Teradyne Inc. (TER) shares plunged 20.13% in after-hours on Wednesday, January 26, 22022, and closed the daily trading at $114.51. However, in the regular trading session, TER’s stock gained 3.67%. TER shares have risen 10.19% over the last 12 months, and they have moved down 3.34% in the past week. Over the past three months, the stock has gained 24.51%, while over the past six months, it has soared 17.44%.

Let’s have a brief look at its recent news and developments.

TER latest development

On January 26, 2022, Teradyne, Inc. (TER) reported financial results of Q4 and fiscal year 2021 which ended on December 31, 2021.

Q4 2021, financial highlights

TER reported total revenue of $885 million for the fourth quarter of 2021 compared to $759 million in the fourth quarter of 2020. It earned a gross profit of $527.04 compared to $449.8 million in Q4 2020. Total operating expenses were $262.6 million compared to $215.7 million in Q4 2020. GAAP net income for the fourth quarter was $230.3 million or $1.29 per diluted share compared to net income of $196.3 million or $1.10 per diluted share in Q4 2020.

FY 2021, financial highlights

Teradyne’s total revenue was $3.7 billion for fiscal 2021 compared to $3.1 billion for fiscal 2020. It earned a gross profit of $2.206 billion compared to $1.785 billion in FY 2020. Total operating expenses were $997.9 million in FY 2021 compared to $857.3 million in FY 2020. GAAP net income for FY 2021 was $1.02 billion or $5.56 per diluted share compared to net income of $784.2 million or $4.28 per diluted share in FY 2020.

Q1 2022, financial outlook

  • The company is expecting revenue of $700 million to $770 million for Q1, 2022.
  • It is expecting GAAP net income of $0.71 to $0.93 per diluted share and non-GAAP net income of $0.76 to $0.98 per diluted share.

TER dividend declaration

With the financial results announcement, Teradyne’s Board of Directors declared a quarterly cash dividend of $0.11 per share, which is payable on March 18, 2022, to shareholders of record as of the close of business on February 18, 2022. The company also announced to repurchase a minimum of $750 million of its common stock in 2022.

Conclusion

After the latest financial results announcement, Teradyne stock went down on Thursday. TER stock plummeted just due to the financial outlook for FY 2022. Its Q4 and FY 2021 financial results beat the revenue and earnings estimates.

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