TER Partners With Siemens for Robotics: How Should You Play the Stock?
Teradyne TER recently announced a collaboration between its Robotics division, Teradyne Robotics and Siemens to develop advanced robotics showcase at MxD (Manufacturing x Digital) in Chicago, a leading hub for digital manufacturing and cybersecurity in the United States.
The collaboration will highlight advanced robotics and automation solutions, featuring products from Teradyne Robotics subsidiaries, Universal Robots and MiR.
The showcase will demonstrate how cobots, mobile robots and AI-driven technologies can be integrated into real-world factory environments across various industries.
The collaboration boosts TER’s Robotics footprint and domain expertise. In the first half of 2024, Teradyne’s Robotics segment registered a 10.6% year-over-year increase in revenues to $177.9 million.
Teradyne, Inc. Price and Consensus
Teradyne, Inc. price-consensus-chart | Teradyne, Inc. Quote
The success was largely due to the strong performance of its Universal Robots (UR) and Mobile Industrial Robots (MiR) product lines, which are at the forefront of TER’s expanding robotics offerings.
TER Shares Rise 20% YTD; Will The Momentum Continue?
Teradyne's strong first-half 2024 results have been driving shares that increased 19.6% in the year-to-date period compared with the Zacks Computer & Technology sector’s rise of 19.4% and the Zacks Electronics - Testing Equipment industry’s rise of 3.4%.
In first-half 2024, revenues increased 2.1% year over year to $1.33 billion. Semiconductor test revenues were $954.8 million, up 7.3% over the same year-ago period. System Test and Wireless Test revenues declined by 19.4% and 26.2%, respectively.
Will Strong Robotics Portfolio Drive TER’s Prospects?
Teradyne is strengthening its robotics position by leveraging its diverse portfolio and focusing on automation through partnerships and technological integration.
Expanding its footprint in the Robotics segment, Teradyne collaborated with NVIDIA NVDA to integrate advanced AI capabilities into its automation solutions.
TER’s collaboration with NVIDIA brings new AI capabilities to automation, enhancing UR’s cobots with faster path planning and introducing MiR’s AI-powered Pallet Jack for precise autonomous pallet handling.
In addition to its robotics advancements, it also expanded its OEM solutions channel, increasing the number of partners and achieving over 70% growth in this channel from the first half of 2023 to the first half of 2024.
TER Q3 Guidance Positive
For third-quarter fiscal 2025, Teradyne expects revenues to be between $680 million and $740 million. Non-GAAP earnings are expected to be between 66 cents and 86 cents.
The Zacks Consensus Estimate for third-quarter fiscal 2025 revenues is currently pegged at $714.07 million, suggesting 1.47% growth year over year.
The consensus mark for earnings is currently pegged at 78 cents, unchanged in the past 30 days.
TER Stock – Buy, Sell or Hold?
Teradyne stock is not so cheap, as the Value Score of D suggests a stretched valuation at this moment.
The forward 12-month Price/Sales ratio for TER stands at 7.84X, higher than its Zacks Electronics - Testing Equipment industry’s 5.53X, reflecting a stretched valuation.
Teradyne currently carries Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in the stock.
Top-Rank Stocks To Buy
AudioEye AEYE and Aspen Technology AZPN are a couple of better-ranked stocks in the broader sector, each sporting Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
AudioEye’s shares have gained 283.6% in the year-to-date period. The long-term earnings growth rate for AEYE is pegged at 25%.
Aspen Technology’s shares have gained 6.1% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 13.12%.
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