This is what we did to resolve the issue.
Make sure your test device udid is added into the provisioning profile. This is to be done within the apple developer console.
Once your test device is added, make sure you generate the new provisioning profile and download it to your test machine.
Double click to apply the new provisioning profile.
Now try to build and deploy app from xcode to your test device. If this works then you should have no problem executing your automated tests.
The other thing you can try is to manually run the ios-deploy command on your test machine by specifying the bundle id to your ipa and then see what error message you get.