Summary
- Teradyne beat both top and bottom lines for Q4-2022 but provided lower guidance for Q1-2023.
- 3nm production ramp delays will punish revenues and earnings in the first half of 2023, but I expect demand to pick up in the second half.
- Even as a ramp in 3nm testing for the second half of 2023 is credible, I expect Teradyne to return to growth only in 2024.
- Industrial Automation also performed below expectations due to industrial weakness in Europe.
- Teradyne's long-term growth story is intact but delayed some; I remain a buyer but am reducing my growth projections and expected return on investment.
For further details see:
Teradyne Guides Lower; Expects To Return To Growth In 2024