Teradyne, parent company to Universal Robots and Mobile Industrial Robots (MiR), has announced its first quarter earnings for the three months to 31 March 2019.
The figures were ahead of estimates with quarter one revenues rising 1% to $494m; the market was looking for $476m. Q1 adjusted EPS rose 20% to $0.54, exceeding estimates of $0.44.
The Industrial Automation division revenue increased 35% in Q1, driven by a 16% increase in Universal Robots, as well as reflecting the acquisition of MiR in the prior year.
The outlook for the full year remains essentially unchanged, as pockets of strength such as 5G test are offset by softness in areas such as automotive test.
Guidance for the second quarter of 2019 is for revenue of $520m to $550m, with adjusted EPS of between $0.56 and $0.65 per diluted share, compared to consensus estimates of $0.58.
UK investment house Killik & Co said in its daily note: “This is a solid start to the year from Teradyne, highlighting steady execution against its longer-term opportunity set, whilst navigating short-term pockets of weakness in some of its more cyclical end-markets. We continue to like Teradyne for its dominant position in collaborative robots as well as other industries with secular growth opportunities. Whilst shares are trading above historical averages on 20.3x December 2019 consensus earnings, we believe estimates could see upgrades as we go through the year.”