Seeking Alpha
Long/short equity, contrarian, short-term horizon, dividend investing
Profile| Send Message|
( followers)  

Teradyne, Inc. (TER) is scheduled to release last fiscal quarter's results after the closing bell on January 25, 2012. Let's take a look at how Teradyne has done in recent quarters.

Teradyne, Inc., together with its subsidiaries, provides automatic test equipment products and services worldwide. It operates in two segments, Semiconductor Test and Systems Test Group. The company was founded in 1960 and is based in North Reading, Massachusetts. TER trades an average of 4.1 million shares per day.

52-Week High: $19.19

52-Week Low: $10.37

Book Value: $7.44

Float Short: 11.78%

On average, 12 analysts are expecting a drop of $-0.23 in earnings per share compared with last quarter's results of $0.34. A beat of $0.11 per share, will top the estimated per share earnings. Analyst estimates range between $0.08 and $0.12 per share.

There is simply no way I could estimate anything other than a beat of earnings estimates based on the recent price and the short interest. Teradyne has a history of beating with the last five quarters performing better than expected and I believe the next one will add to the streak. About two weeks ago the stock moved above the 200-day moving average and has not looked back. While I would expect some profit taking ahead of earnings the stock continues to demonstrate strength day after day. Even today when the stock was down for the first time in five trading sessions, it was down only marginally and it was not at all significant. I would prefer to hedge positions more than take some off the table considering the timing of the move higher. With option premium relatively higher due to earnings it may be a good time to write some covered calls to lock in some gains and still have the ability to squeeze some more out of this one.

The company has rising revenue year-over-year of $1.61 billion for 2010 vs. $819.41 million for 2009. The bottom line has rising earnings year-over-year of $379.73 million for 2010 vs. $-133.84 million for 2009.The company's earnings before interest and taxes are rising with an EBIT year-over-year of $413.47 million for 2010 vs. $-122.42 million for 2009.

Here is a look at the fiscal year revenue.

(Click charts to expand)

paid2trade.com revenue gross bar chart for TER

Gross reported revenue compared with the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 327.83 M $ 344.39 M $ 16.56 M 5.05%
Jun-11 $ 391.73 M $ 410.52 M $ 18.79 M 4.8%
Mar-11 $ 366.32 M $ 377.16 M $ 10.84 M 2.96%
Dec-10 $ 316.30 M $ 322.17 M $ 5.87 M 1.86%
Sep-10 $ 506.92 M $ 502.09 M $ -4.83 M -0.95%

M = millions, B = billions

Differences are rounded. (Some one-time items are often excluded in reported EPS)

paid2trade.com Quarterly Estimates And Actual EPS results TER

Reported earnings per share compared with the mean estimate. Differences are rounded.

The total short interest number of shares for TER

paid2trade.com short interest tool. The total short interest number of shares for TER

The number of days to cover short interest based on average daily trading volume for TER.

paid2trade.com number of days to cover short interest based on average daily trading volume for TER Lam Research Corporation (LRCX) is expected to report last fiscal quarter's results after the closing bell on January 25, 2012. Let's review how Lam Research has performed in recent quarters.

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipments used in the fabrication of integrated circuits. The company was founded in 1980 and its headquarters is in Fremont, California. LRCX trades an average of 3.8 million shares per day.

52-Week High: $59.10

52-Week Low: $34.81

Book Value: $19.57

Float Short: 6.69%

On average, 14 analysts are expecting a drop of $-0.33 in earnings per share compared with last quarter's results of $0.63. A beat of $0.30 per share, will top the estimated mean earnings. Analyst estimates range between $0.27 and $0.34 per share.

After the purchase of Novellus Lam would appear to be in a better position to reward investors with a longer time frame holding. After a tough end of the year in 2011, the stock is now breaking above the 200-day moving average with some conviction. Today closed dead on the key moving average and I would look for a move beyond given the timing of the earnings release and the strength the stock is demonstrating. One concern I have is the short interest growing indicating smart money is positioning to gain from weakness in Lam. If short interest grows much further it may be a good time to take some gains off the table. Generally you don't want to be on the other side of short sellers. They typically are right about price direction.

Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $3.24 billion for 2011 vs. $2.13 billion for 2010. The bottom line has rising earnings year-over-year of $723.75 million for 2011 vs. $346.67 million for 2010.The company's earnings before interest and taxes are rising with an EBIT year-over-year of $804.29 million for 2011 vs. $425.41 million for 2010. Rising revenue along with rising earnings is a very good sign and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue.

paid2trade.com revenue gross bar chart for LRCX

Gross reported revenue compared with the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 670.96 M $ 680.44 M $ 9.48 M 1.41%
Jun-11 $ 748.75 M $ 752.02 M $ 3.27 M 0.44%
Mar-11 $ 803.68 M $ 809.09 M $ 5.41 M 0.67%
Dec-10 $ 828.73 M $ 870.71 M $ 41.98 M 5.07%
Sep-10 $ 793.89 M $ 805.87 M $ 11.98 M 1.51%

M = millions, B = billions

Differences are rounded. (Some one-time items are often excluded in reported EPS)

paid2trade.com Quarterly Estimates And Actual EPS results LRCX

Reported earnings per share compared with the mean estimate. Differences are rounded.

The total short interest number of shares for LRCX

paid2trade.com short interest tool. The total short interest number of shares for LRCX

The number of days to cover short interest based on average daily trading volume for LRCX.

paid2trade.com number of days to cover short interest based on average daily trading volume for LRCX

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the "confirmed" symbols from earnings.com that I believe to be of the most interest.

Source: Earnings Preview: Teradyne And Lam Research Report Results Wednesday