I don't think that I really needed this haircut. Thank God for stops.
From briefing.com
11:03 ET ******
Teradyne (TER) 42 11/16 -6 1/2: Teradyne shares are getting slammed this morning by a note out of Prudential Securites. Analyst, Shekhar Pramanick believes the September quarter order guidance of $850-900 mln is at risk due to digestion at sub-contract test houses and weakness in J750 logic tester business. Pramanick does not see this quarter's consensus EPS estimate of $0.84 and revenue estimate of $845 mln at risk, however he notes that he is modeling revenue of $820 mln and EPS of $0.81. Furthermore, Prudential has cut their price target on TER shares 31 percent from $94 to $65, representing 16.6x FY01 EPS estimate. Pramanick goes on to caution that if the current trends involving digestion at the sub-contract level continues for the next few quarters, FY01 revenue estimates in the $4 bln range and his modeled EPS estimate of $3.92 could be at risk, implying that the consensus EPS estimate listed by First Call of $4.11 could be significantly at risk. September quarter (Q3) results are set to be released on October 17 after the market closes, and Pramanick expects orders guidance to come in around $826 mln, about three to eight percent below estimates. According to the note, Teradyne is having an unusually back-end loaded quarter. We can only hope that's the case and that the next two weeks will see bookings pick up in time to give investors something to look forward to for Q4 and 2001. We should note that Teradyne management came out and affirmed the First Call estimate of $0.84 at the Banc of America Securities Investment Conference in San Francisco yesterday, so a miss seems highly unlikely, but long-term, the picture got a bit cloudier this morning. - Matt Gould, Briefing.com |
