TE

Teradyne, Inc. stock research

Mar 31, 2024

FY2024 Q1

Teradyne (TER) Gross Margin — Quarter Ended Mar 31, 2024

Revenue and gross profit both decreased compared to the previous quarter, while cost of revenue also declined. Gross margin remained stable at the same level as the prior quarter but weakened compared to the same quarter one year earlier.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue and gross profit both decreased compared to the previous quarter, while cost of revenue also declined. Gross margin remained stable at the same level as the prior quarter but weakened compared to the same quarter one year earlier.

  • The strongest observable margin driver is the stable gross margin relative to the prior quarter, as the proportional relationship among revenue, cost of revenue, and gross profit remained unchanged.
  • Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was unchanged. Compared to the same quarter one year earlier, revenue and gross profit were lower, and gross margin weakened.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

56.6%

Gross profit

$339.3M

Revenue

$599.8M

Cost of revenue

$260.5M

Quarter-over-quarter change

-0.0 pts

Year-over-year change

-1.2 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jul 2, 2023$684.4M$402.5M$281.9M58.8%
Oct 1, 2023$703.7M$398.3M$305.4M56.6%
Dec 31, 2023$670.6M$379.5M$291.1M56.6%
Mar 31, 2024$599.8M$339.3M$260.5M56.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2023

-0.0 pts

Year-over-year change

Apr 2, 2023

-1.2 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the stable gross margin relative to the prior quarter, as the proportional relationship among revenue, cost of revenue, and gross profit remained unchanged.

Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was unchanged. Compared to the same quarter one year earlier, revenue and gross profit were lower, and gross margin weakened.

Monitor the trend in gross margin relative to revenue, as it remained stable sequentially but weakened year-over-year.

TER Gross Margin — Quarter Ended Mar 31, 2024