Why Teradyne (TER) Stock Is Falling Today

NEW YORK (TheStreet) -- Teradyne (TER) was falling -4.7% to $17.39 Friday after issuing a second quarter guidance that falls below analysts' expectations for earnings.

In its second quarter guidance Teradyne said it expects earnings of between 36 cents and 43 cents a share. Analysts surveyed by Thomson Reuters expect earnings of 49 cents a share for the quarter, 6 cents higher than the high-end of the company's guidance.

Though its guidance falls below estimates for the second quarter, Teradyne beat analysts' estimates in the first quarter. In the first quarter Teradyne reported earnings of 11 cents a share, beating estimates of 6 cents a share by 5 cents. Revenue grew 14.5% to $321 million in the quarter, beating estimates of $614.57 million.

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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 revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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