Name: Robots Are Having a Good Pandemic
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Robots Are Having a Good Pandemic

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This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.https://www.barrons.com/articles/robots-are-having-a-good-pandemic-51595430243are weathering the coronavirus pandemic these days. Recent robot-maker earnings illustrate the point.(ticker: TER) and(ABB) both crushed second-quarter numbers. ABB shares, which trade overseas as well as in the U.S., are up 3.9% in recent trading. Teradyne stock rose 4% in after-hours trading Tuesday, following the company’s earnings release. It’s down 0.7% in recent trading.Teradyne equipment to test semiconductors, but the company also sells cobots, short for “collaborative robots.” which are designed to work along humans, as well as autonomously guided vehicles for warehouses and manufacturing plants.ABB is a , selling huge robotic arms to industry as well as other products. The company also sells controllers and software that integrate and control automation equipment on the factory floor.Teradyne $1.33 in per-share earnings, above the highest end of the guidance range the company gave to analysts. What’s more, management guided to about $1.10 in per-share earnings for the third quarter. The Street estimates only about 64 cents in per-share earnings.ABB, for its part, 22 cents in per-share earnings. Analysts expected 10 cents.Industrial automation is one reason earnings remain strong at the companies. At Teradyne, automation sales increased throughout the second quarter, despite the fact that many industrial customers were struggling to stay open in the second quarter.“Industrial Automation sales, while down from the year ago period due to the global slowdown in business activity, improved monthly through the quarter,” said Teradyne CEO in the company’s news release.At ABB, actually fell in the second quarter. The company sells a lot of those huge industrial robots to the , which is struggling with lower volumes during the pandemic. Covid-19, however, is also accelerating trends benefiting the company.“We see more connected robots than we’ve ever seen before.... This is a drive that [our robotics division] have done also to make it easy to access, but also to monitor the robots externally,” said CEO Björn Klas Otto Rosengren on the company’s earnings conference call. “There is a lot of discussions regarding digital solutions at the moment.... We feel pretty comfortable that the trend will accelerate.”Citigroup analyst upgraded automation peer(ROK) to the equivalent of Tuesday, raising his price target to a Street-high $252 a share. He cited accelerating factory automation trends, driven by reshoring and potential labor cost savings, in his report.—bringing back manufacturing capacity to the U.S.—is gaining steam, according to Kaplowitz, because of the multiple supply-chain disruptions that swept the globe as the pandemic spread to different places at different times.Investors have taken some notice. Teradyne stock is still up about 31% year to date, far better than comparable returns of theand,despite giving back the after-hours stock gains.ABB shares are up about 7% year to date. And Rockwell shares are up some 11% year to date.Write to Al Root atCloseRobots are weathering the coronavirus pandemic better than many these days.SENDAn error has occurred, please try again later.Thank youThis article has been sent toCopyright ©2020 Dow Jones &amp; Company, Inc. All Rights Reserved.Copyright ©2020 Dow Jones &amp; Company, Inc. All Rights ReservedThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.

This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.https://www.barrons.com/articles/robots-are-having-a-good-pandemic-51595430243are weathering the coronavirus pandemic these days. Recent robot-maker earnings illustrate the point.(ticker: TER) and(ABB) both crushed second-quarter numbers. ABB shares, which trade overseas as well as in the U.S., are up 3.9% in recent trading. Teradyne stock rose 4% in after-hours trading Tuesday, following the company’s earnings...

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Al Root

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Robots Are Having a Good Pandemic

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