TER - Teradyne Hindered By Near-Term Guidance While The Long-Term Outlook Is Attractive

• Teradyne had a strong second quarter, with better than expected results across the testing business and better margins, but the Street wanted another guidance boost from management.
• Long-term testing equipment demand seems solidly underpinned by increasing test complexity and underlying chip volume growth, and Teradyne has growth opportunities in areas like advanced compute.
• Cobots will facilitate the adoption of advanced automation in many end-markets, and Teradyne's top-notch portfolio should drive high teens long-term growth.
• Overall long-term 8% revenue growth and double-digit FCF growth can drive a high single-digit annualized total return, making Teradyne a relatively undervalued play on long-term chip complexity/volume growth.

For further details see: