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