Teradyne Lifts Q3 Outlook

Teradyne (TER) this morning sharply raised its outlook for its fiscal third quarter ending October 4.

The semiconductor test equipment company said it now sees revenue of $250 million to $260 million, up 50% sequentially, and above previous guidance of $190 million to $205 million. The company now sees non-GAAP EPS of 10-13 cents; previous guidance had been for a range of a loss of 2 cents and a profit of 2 cents.

The Street consensus for the quarter has been $201.5 million in revenue and profits of a penny a share.

Teradyne also said that in light of an expected return to profitability and generally improving conditions, it will eliminate previous salary reductions, effective in the fourth quarter.

The higher guidance has been met with a decidedly muted response: TER today is up 6 cents, or 0.7%, to $9.31.