Teradyne Inc.'s (TER) fourth-quarter earnings more than tripled to beat expectations. The maker of semiconductor-testing equipment also predicted results for the current quarter above Wall Street's forecasts.
Shares jumped 11% to $16.25 in after-hours trading. That price represents the stock's highest level since August 2007, before the recession began.
For the current quarter, Teradyne predicted adjusted earnings of 33 to 39 cents a share on revenue of $350 million to $375 million, better than analysts' predictions for 19 cents a share and $295 million, respectively.
Chief Executive Mike Bradley said the forecast was based on a better near-term outlook from customers and positive trends in electronic end markets. The company makes equipment for the electronic, semiconductor and telecommunications industries.
The chip sector has rebounded strongly this year as demand revived after a slump during the recession, but the robust pace has shown signs of abating in some corners.
Teradyne posted a profit of $60.1 million, or 27 cents a share, from $16.9 million, or 9 cents a share, a year earlier. Excluding items, earnings rose to 37 cents a share from 17 cents a share.
Revenue climbed 21% to $322.2 million.
In October, Teradyne predicted earnings of 21 cents to 28 cents a share on revenue of $300 million to $325 million, below analysts' predictions at the time.
Gross margin rose to 52.5% from 46.6%.
Net orders were up 17% on the year and 1.3% sequentially.
Copyright © 2011 Dow Jones Newswires