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NEW YORK (TheStreet) -- Shares of Teradyne (TER) - Get Free Report were gaining 7.7% to $19.97 on Wednesday after the semiconductor test equipment supplier beat analysts' estimates for earnings in the third quarter.

On Tuesday, Teradyne reported earnings of 40 cents a share for the third quarter, beating analysts' estimates of 38 cents a share for the quarter. Revenue fell 2.5% year over year to $466 million, in line with analysts' estimates.

The company said it expects to report earnings of 7 cents to 12 cents a share and revenue of $295 million to $320 million for the fourth quarter. Analysts expect the company to report earnings of 11 cents a share and revenue of $328.9 million for the quarter.

"Were on track to deliver our 6th straight year of above model financial results driven by strong tester sales for mobile devices, improving storage test demand, and a growing contribution from industrial automation," CEO and President Mark Jagiela said in a statement. "While our fourth quarter guidance reflects the normal seasonal slow down in tester deliveries, we are making selective inventory investments to capture the expected growth in 2016 customer demand."

TheStreet Ratings team rates TERADYNE INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate TERADYNE INC (TER) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

You can view the full analysis from the report here: TER

TER data by YCharts

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