Teradyne (NASDAQ: TER) saw its stock price plummet 6.02% in after-hours trading on Tuesday, despite reporting second-quarter earnings that beat analyst expectations. The sharp decline highlights investors' concerns over the company's year-over-year performance deterioration.

The semiconductor test equipment manufacturer reported adjusted earnings per share of $0.57, surpassing the analyst consensus estimate of $0.54 by 6.15%. However, this figure represents a significant 33.72% decrease from the $0.86 per share earned in the same period last year. Similarly, Teradyne's quarterly sales came in at $651.797 million, slightly above the expected $647.908 million, but marking a 10.70% decline from the $729.879 million reported a year ago.

While Teradyne managed to exceed Wall Street's expectations for the quarter, the substantial year-over-year drops in both earnings and revenue appear to have spooked investors. The after-hours selloff suggests that market participants are focusing on the company's declining performance trajectory rather than its ability to surpass lowered expectations. As the semiconductor industry faces challenges, Teradyne's results may be indicative of broader sector headwinds that could impact its future growth prospects.