Teradyne Shares Tumble After Hours On Q4 Rev Warning

Teradyne (TER) shares are trading sharply lower after hours on disappointing Q4 guidance.

The semiconductor equipment company reported Q3 revenue of $502 million, below the Street consensus of $507.8 million, while non-GAAP profits of 82 cents a share beat the Street consensus at 79 cents.

For Q4, the company sees revenue of $300 million to $325 million, with non-GAAP profits of 21-28 cents a share, well short of the previous Street forecast of $451.3 million and 59 cents.

The company noted that orders for test equipment used for systems-on-a-chip applications “fell sharply as our customers digest the investments made over the last year.”

TER in late trading is down $1.19, or 10%, to $10.70.