Teradyne forecasts quarterly revenue below estimates on weak demand; shares fall

Teradyne forecast third-quarter revenue below Wall Street estimates on Wednesday, signaling sluggish demand for its semiconductor-testing equipment and sending its shares down more than 7% in extended trading.

Demand for the company’s products from certain markets such as the automobile sector has remained soft, as customers are grappling with excess inventory due to a long slump stemming from stockpiling during the pandemic.

Teradyne designs and develops technology to test chips and electronic equipment and sells robotic systems to customers in the manufacturing sector.