Teradyne shares down on 4Q outlook
Shares of chip company Teradyne Inc. tumbled today after its outlook for the fourth quarter widely missed Wall Street's expectations.
The stock of the North Reading company fell 93 cents, or 7.8 percent, to $10.96 in afternoon trading.
Teradyne reported late Wednesday that it expected adjusted net income between 21 cents per share and 28 cents per share for the fourth quarter. Adjusted net income strips out one-time charges. The company also predicted revenue between $300 million and $325 million.
However, analysts polled by Thomson Reuters expected a better showing, forecasting net income of 59 cents per share on $432.8 million in revenue. Analysts' estimates typically exclude one-time items.
Teradyne, which provides chip manufacturing equipment, earned $147.3 million, or 66 cents per share, in the third quarter. That's up from $6.7 million, or 4 cents per share, in the year-ago period. Adjusted net income was 82 cents per share.
Revenue for the third quarter nearly doubled to $502 million compared with $262.2 million in the previous year.
Analysts had expected third-quarter net income of 79 cents per share on $508 million in revenue.