Teradyne closed the Universal Robots acquisition on June 11. Universal Robots is the market leader in the nascent collaborative robots space, with around 65% market share in a roughly $100 million market, according to the analyst note.
The firm believes that Universal Robots should generate $60 million to $65 million in revenue this year, and it should grow 50% annually untill 2018.
Additionally, the deal should be accretive this year and should generate around $0.05 to $0.07 earnings per share next year, Keybanc added.
Teradyne is a supplier of automatic test equipment that operates in three segments: semiconductor test, wireless test and system test.
Shares of Teradyne are now down 0.71% to $21.06 in afternoon trading Friday.
Separately, TheStreet Ratings team rates TERADYNE INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TERADYNE INC (TER) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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, increase in net income, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TER's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 6.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- TER has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.56, which clearly demonstrates the ability to cover short-term cash needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 3429.3% when compared to the same quarter one year prior, rising from $0.93 million to $32.79 million.
- Net operating cash flow has significantly increased by 245.35% to $37.53 million when compared to the same quarter last year. In addition, TERADYNE INC has also vastly surpassed the industry average cash flow growth rate of 19.77%.
- The gross profit margin for TERADYNE INC is rather high; currently it is at 61.85%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.57% trails the industry average.
- You can view the full analysis from the report here: TER Ratings Report