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Teradyne Inc. shares rallied in the extended session Wednesday after the electronic testing equipment maker’s strong outlook based on auto and industrial demand sailed past Wall Street estimates, and analysts debated how much influence the iPhone maker had on the forecast.
Teradyne TER shares rallied as much as 7% after hours, following a 1.1% decline in the regular session to close at $93.33. The company is scheduled to hold a conference call with analysts at 8:30 a.m. Eastern on Thursday.
Teradyne Inc.’s (NYSE: TER) stock price soared by nearly 7% in pre-market trading Wednesday, following the company’s better-than-expected earnings results for the fourth quarter of 2020. The industrial automation and robotics provider reported a 28% year-over-year increase in revenue to $714 million and a 32.5% jump in profits, compared to the same quarter in 2019.
The strong performance was largely driven by strong demand from automotive and industrial customers, while the pandemic-induced shelter-in-place order has accelerated the need for automation and robots to improve operational efficiency.
Looking ahead, Teradyne remains optimistic targets higher revenue and profits year-over-year in 2021. “We are delighted to report better-than-expected results in the fourth quarter, driven by strong demand from our automotive and industrial customers,” said Mark Jagiela, Teradyne’s Chairman and CEO in a press release.
The company also expects continued high demand in the industrial sector, noting improved orders for its autonomous robots. The company also mentioned that there is potential for higher revenues in the semiconductor industry as chipmakers look to expand their production capabilities.
As part of its outlook for 2021, Teradyne expects revenues to be between $3.1 billion and $3.2 billion, with adjusted profits up between 11% and 13% from 2020. With such strong fundamentals, investors are confident that Teradyne’s stock will continue to climb in the near-term.