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Thursday 28 June 2018

Teradyne Inc. (NYSE : TER) - Someone Ahead of Market ?

On 24 April 2018, Teradyne reported revenue of $487 million for the first quarter of 2018 of which $373 million was in Semiconductor Test, $49 million in Industrial Automation, $43 million in System Test, and $23 million in Wireless Test. GAAP net profit for the first quarter was $87.0 million or $0.43 per share. 

More details, Teradyne reports revenue and earnings growth in 1st Quarter 2018. 

Some points to take note from the announcement.

1) Despite the strong 1st quarter results, the demand outlook for 2018 mobile devices test capacity declined sharply in the quarter and 2nd quarter guidance reflects that revised outlook.

2) Guidance for the 2nd quarter of 2018 is revenue of $490 million to $520 million, with GAAP net income of $0.39 to $0.46 per diluted share and non-GAAP net income of $0.45 to $0.52 per diluted share.

The following day, 25 April 2018, the share price opened with gap down with a lost of $4.46. 

The most interesting part is not the announcement day. It was several days before 31 March, as shown with Marker A on the chart below. The side-way price action showed smart money knew ahead of the market.

Daily chart.

  
With the recent price, as shown by Marker B, few days before 2nd quarter ends.
What do you think the outcome of it ?

Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. 

Source : 
1) Metastock
2) www.teradyne.com

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