Teradyne (TER)
Shares jumped about 12-13% at the open, up 15% in the pre-market after the quarterly report, off a 487 high. Over the past year the stock has run 295%. It has been a strong momentum name all year, backed by earnings.
This was a beat-and-raise quarter, better than expected on both revenue and profit. Adjusted earnings per share came in at 2.47 against the 2.09 the market expected. Revenue was 1.329 billion, also above forecasts and more than double a year earlier, up over 100%. Earnings rose more than 300% year over year. This marked the second straight quarter of record revenue.
AI is the main driver, lifting demand for Teradyne's semiconductor test equipment. Semiconductor test revenue topped 1.1 billion. Product test was strong, in the millions. Robotics also showed strength. The CEO said demand stays strong across the whole AI supply chain, from wafer making to data centers, and that AI-related chip-testing demand looks healthy in the near term.
Guidance backed that up: third-quarter revenue of 1.22 to 1.3 billion, and adjusted EPS of 1.85 to 2.15.
An analyst put an overweight rating with a 550 price target, up from 400, against a 362 share level, pointing to real upside.
Humana (HUM)
The stock first showed a down arrow of about 4.5% in the pre-market, then turned around and traded off roughly a quarter percent. It could be a choppy, flip-flopping day.
Humana beat in the second quarter. Adjusted EPS was 7.61, above expectations. Revenue was more than 40.8 billion, also better than expected, with healthy growth and stable medical cost trends.
The concern is guidance. The company cut its full-year GAAP EPS outlook to at least 6.52, down from 8.36 previously. It held its adjusted EPS guidance at at least 9.00 per share, which suggests the core business stays fairly stable. So there is a push-pull: a strong trailing quarter against a lower headline earnings forecast. Medicare Advantage remains a headwind and was part of why they lowered the numbers, which may have spooked the market before some investors decided the picture was not that bad.
Ford (F)
Ford rallied and carried its pre-market gains into the open after a stronger-than-expected quarter. Revenue was 48.3 billion, above forecasts. Adjusted EPS was 42 cents.
The company raised its full-year guidance, and the increase was actually bigger than GM's recent boost. Ford now guides for adjusted EBIT of 10 to 11 billion, up from 8.5 to 10.5 billion. Adjusted free cash flow is now seen at 6 to 7 billion, up from 5.6 billion.
Management pointed to a recovery from an aluminum supply disruption that had worried investors, plus solid execution across its gas and traditional vehicle segments. That points to a resilient consumer despite inflation.
People are keeping their cars far longer. The average vehicle shelf life is now 14.5 years, up from a 12-plus-year figure heard before. Even so, Ford is leaning into new vehicles.
Analyst views are split, a mix of equal weights, overweights, and holds. On Monday, Jefferies moved to a buy from a hold, citing improved capital allocation, the aluminum plant overhang cleared, and a good outlook for volumes and demand. Among the big three, Jefferies favored Ford and GM and set Stellantis aside. Morgan Stanley cut its price target to 15 and stayed equal weight. Piper Sandler raised its target to 17 and is overweight. Ford and GM have performed well overall, while Stellantis has been under pressure.
