Active Stocks: Teradyne, Inc. [NASDAQ: TER] makes headlines as it beats analysts expectations. The semi-conductors industry has been hit hard by the trade war between the U.S and China. However, two results this week prove that things are not as bad as they look.
On Wednesday, two companies in this industry announced their results and they have both beat analyst expectations. These two are Texas Instruments (TXN) and Teradyne (TER). Texas Instruments Q2 revenues fell by 9.8%, but still managed to beat analyst expectations. Analysts were expecting revenues of $3.7 billion, but the company managed to return revenues of $3.6 billion. The other one is Teradyne Inc (TER). TER’s results also beat analyst expectations, as its revenues rose in Q2. The company reported earnings of $564.2 million, while analysts were expecting earnings of $536.7 million.
While TXN’s results show that the impact of the trade war is not that hard in the present, TER shows where the semiconductor industry is going in the future. The company supplies automatic test equipment to chip makers who are looking to test new technologies. In essence, when its revenues are rising, it shows that chip makers are expanding their capacity. According to the CEO, Mark Jagiela, the company has experienced rising demand in 5G infrastructure, memory, and networking equipment.
From a look at its price action, TER closed bullish on Wednesday’s rally that saw it close the day with gains of 20%. When markets open, eye’s will be on TER as it was a top gainer in the market yesterday. The key level to watch will be the yesterday’s high of $58.61.