NEW YORK (AP) - Analysts saw a glimmer of a silver lining Tuesday in Teradyne Inc.’s slashed forecast for the current quarter, detecting signs that the market for semiconductor testing equipment may be hitting a bottom.
The North Reading, Mass. company said Monday it expects a loss of 40 cents to 42 cents per share on sales of $115 to $120, for the quarter ending April 5, down from a previous estimate of 28 cents to 31 cents a share on sales of $125 million to $145 million. That fell below Wall Street projections.
However, Citi Research Investment analyst Timothy Arcuri reiterated a “Buy” rating on shares and told investors in a note Tuesday that “positive signs are starting to emerge” for the company.
He called the new forecast a “modest negative surprise” but added that factory use seems to be improving. The chip market Teradyne serves has suffered from a glut of supply, especially for memory chips, which has depressed prices and forced chip makers to ratchet down production.
“We do believe that the company may be seeing a bottom forming over the next quarter or two,” Stifel Nicolaus analyst Patrick Ho said in a client note Tuesday. “And while we do not predict a sudden turnaround, finding a bottom is at least a start for the company’s recovery.” He kept a “Hold” rating on shares.
Teradyne’s stock is down 65 percent from a year ago, but up 6 percent year-to-date. Shares closed Monday up 38 cents, or 9 percent, at $4.48.
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