TE

Teradyne, Inc. stock research

Jun 30, 2024

FY2024 Q2

Teradyne (TER) Gross Margin — Quarter Ended Jun 30, 2024

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose in tandem with revenue, lifting gross margin above the prior quarter but slightly below the year-ago level.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose in tandem with revenue, lifting gross margin above the prior quarter but slightly below the year-ago level.

  • Cost of revenue grew at a slower pace than revenue when compared with the prior quarter, supporting margin improvement. Relative to a year ago, gross margin weakened as cost growth outpaced revenue growth.
  • Compared to the preceding quarter, revenue and gross profit both increased and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was slightly lower.

Gross margin snapshot

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

Gross margin

58.3%

Gross profit

$425.8M

Revenue

$729.9M

Cost of revenue

$304.0M

Quarter-over-quarter change

+1.8 pts

Year-over-year change

-0.5 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
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%
Jun 30, 2024$729.9M$425.8M$304.0M58.3%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

+1.8 pts

Year-over-year change

Jul 2, 2023

-0.5 pts

What the margin says

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

Cost of revenue grew at a slower pace than revenue when compared with the prior quarter, supporting margin improvement. Relative to a year ago, gross margin weakened as cost growth outpaced revenue growth.

Compared to the preceding quarter, revenue and gross profit both increased and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was slightly lower.

Monitor changes in accounts receivable, which increased with higher sales per the filing context.