Teradyne TER reported second-quarter 2021 earnings of $1.91 per share, which surpassed the Zacks Consensus Estimate by 9.8% and increased 44% year over year.Revenues of $1.09 billion also surpassed the Zacks Consensus Estimate of $1.05 billion. Further, the figure increased 29.76% year over year. Strong performance of Test and Industrial Automation (“IA”) businesses drove top-line growth for the reported quarter.Teradyne, Inc. Price, Consensus and EPS Surprise Teradyne, Inc. price-consensus-eps-surprise-chart | Teradyne, Inc. QuoteQuarter DetailsRevenues from Semiconductor Test platforms, System Test business, IA and Wireless Test business were $834 million, $105 million, $92 million and $55 million, respectively.Test demand across all end markets served remained high for the reported quarter. Moreover, system-on-a-chip test shipments grew approximately 30% year over year.Further, the IA business witnessed strong recovery as IA revenues increased 57% year over year. Also, its Universal Robots delivered growth in North America, Europe and China driven by global economic recovery and expanding range of automation solutions.Non-GAAP gross margin was 59.6%, expanding 340 basis points (bps) year over year.GAAP operating expenses increased 1.81% year over year to $258.1 million. As a percentage of revenues, GAAP operating expenses decreased 645 bps year over year to 23.77%.Selling and administrative (S&A) expenses grew 23.7% year over year to $140.1 million. Engineering and development (E&D) increased 16.9% year over year to $110 million. Nonetheless, S&A and E&D expenses contracted 60 bps and 109 bps as a percentage of revenues, respectively.Acquired intangible assets amortization (AIAA) and restructuring and other (R&O) expenses declined 39.6% and 93.3% year over year to $5.4 million and $2.5 million, respectively. As a percentage of revenues, AIAA and R&O expenses contracted 57 bps and 421 bps year over year, respectively.Consequently, non-GAAP operating margin was at 36.5%, which expanded 500 bps from the year-ago quarter.Balance Sheet & Cash FlowAs of Jul 4, 2021, Teradyne’s cash and cash equivalents (including marketable securities) were $1.24 billion, lower than $1.31 billion on Apr 4, 2021.Net cash provided by operating activities was $206.3 million for the second quarter versus $38.1 million in the prior quarter.GuidanceFor the third quarter of 2021, Teradyne expects revenues between $880 million and $960 million. The Zacks Consensus Estimate for the same is pegged at $931.1 million.Continuous demand from both Test and Industrial Automation end markets are major tailwinds.Non-GAAP earnings are expected between $1.29 and $1.55 per share for third-quarter 2021. The consensus mark for the same is $1.38 per share.Zacks Rank & Stocks to ConsiderCurrently, Teradyne carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader technology sector include Semtech Corporation SMTC, Agilent Technologies A and Microchip Technology Incorporated MCHP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Long-term earnings growth rates for Semtech, Agilent and Microchip are currently projected at 12.5%, 13% and 15.3%, respectively. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. You know this company from its past glory days, but few would expect that it's poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks' Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Agilent Technologies, Inc. (A): Free Stock Analysis Report Microchip Technology Incorporated (MCHP): Free Stock Analysis Report Semtech Corporation (SMTC): Free Stock Analysis Report Teradyne, Inc. (TER): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research